MARKET WRAP: JSE bounces back on positive local and global factors
Interest-rate sensitive stocks, such as banks and retailers, fare best after an upbeat inflation print, while international markets were buoyant on the day
The JSE tracked a global rebound on Wednesday, with banks gaining 2%, given a further lift by reduced concern that the South African Reserve Bank will be forced to raise interest rates due to rand weakness.Domestic inflation in May was recorded at an annual 4.4%, below the consensus forecast of 4.6%, largely due to less-than-expected increases in some food items. Analysts still expect the next move from the Bank to be an increase, with Investec economist Lara Hodes saying this was likely to occur in January 2019.The data helped support banks, retailers and property stocks, which have been under pressure since Friday, when markets began pricing in the economic effects of geopolitical tension. Gains were pared, however, as US markets opened and the Dow struggled to snap a six-session losing streak.The all share gained 0.71% to 56,651.70 points and the top 40 added 0.75%. Banks rose 2.17%, general retailers 1.66%, food and drug retailers 1.48%, and industrials 1.14%. The platinum index...
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