JSE closes higher on banks and retailers, but market remains fragile
The market is up for the first time in three days on less chance of a hawkish stance by the Reserve Bank, following slightly better-than-expected inflation data
The JSE closed firmer on Wednesday, breaking a three-day losing run.Banks and retailers gained on the lower likelihood of a hawkish stance by the South African Reserve Bank, following the release earlier of slightly better-than-expected inflation data.Retreating mining and platinum stocks pared gains in the overall market toward the close.Consumer inflation slowed to an annual 4.4% in May from 4.5% in April, lower than the market’s expectation of 4.6%, and still well within the Bank’s 3%-6% target range.The numbers boosted the rand, with the local currency firming to R13.5599, from R13.7501, in intra-day trade.Nedbank analysts said the relatively benign inflation outlook and the still-weak economy would probably convince the monetary policy committee (MPC) to delay lifting rates for as long as possible.The Dow was 0.25% lower at the JSE’s close and could be on track to record its seventh successive day of losses. European markets were mostly higher, with the FTSE 100 having gained 0...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.