The JSE opened firmer on Wednesday ahead of the budget presentation later in the day, as rand hedges gained on the weaker rand. The rand was at R11.75/$ from R11.73, following dollar strength on Tuesday. Banks also firmed on the expectation that Finance Minister Malusi Gigaba will present a difficult budget geared towards greater fiscal consolidation, and which may contain increasing value added tax (VAT) by one percentage point. Government is facing a budget shortfall of R50bn. "All eyes and ears will be on how the government plans to make up the shortage of funds that we as a country face," said TreasuryOne dealer Gerard van der Westhuizen. The Dow closed 1.01% lower on Tuesday, mainly on Walmart, which fell 10% on disappointing results. The negative sentiment towards mainstream retailers spilt over onto the JSE, with local retailers on the back foot. Asian markets were higher, with the Hang Seng recovering 1.65% following the recent New Year festivities, while the Nikkei 225 adde...
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