JSE closes slightly weaker as banks gain on rand, but global miners fall
The JSE closed a little weaker on Tuesday in choppy trade as the market attempted to find direction on a firmer rand and upbeat global markets. A stronger rand tends to support shares with a local focus, while a weaker rand usually results in gains for rand hedges. Miners also tend to benefit from a softer rand. A firmer rand supports lower inflation, which could lead to interest-rate cuts. Resources and platinum stocks closed weaker on the day, while banks and retailers were star performers. Industrials were marginally higher, as rand hedges lost ground. The rand firmed to R13.6875 to the dollar, the best level in two months, as offshore money flowed into the bond market for the second day, despite Friday’s downgrade of SA’s local currency rating by S&P Global Ratings. Market sentiment was positive as the government pledged to take steps to improve the strained fiscal situation, and so avoid further credit downgrades. Moody’s has retained its local currency credit rating for now, b...
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