adminjust after 3pm.
At 10.03am the all-share index was up 0,41 percent to 40 349,43 points, with industrials gaining 0,63 percent, while banks dipped 0,14 percent.
Asian markets were mixed with the Japanese Nikkei 225 closing 1,28 percent higher and the Hong Kong Hang Seng index giving back 0,21 percent by 9.49am local time.
“The main event today is the Reserve Bank’s interest rate announcement. There is little doubt with renewed rand weakness and steady uptick in inflation that the bank will stay pat,” Rand Merchant Bank said in a morning note.
“The emphasis will be on the nuances in the statement. While we do not expect any huge adjustments to the bank’s inflation forecast, the impact of the labour unrest may result in modest downgrades of the banks’ growth forecasts for 2013, while rand weakness and unit labour cost growth could push the inflation trajectory slightly higher.
“We expect the monetary policy committee to deliver a neutral statement, indicating that the current degree of accommodation is appropriate but without giving explicit guidance on the direction of the next move in rates,” RMB said.
Among individual stocks‚ ArcelorMittal dipped 1,31 percent to R36,07, Bidvest picked up 1,34 percent to R217,34 and Barloworld lifted 1,83 percent to R90,88.
In retail, Foschini gave up 1,06 percent to R123,66. Insurer MMI Holdings added 1,07 percent to R23,56 and in construction Aveng gained 1,16 percent to R28,73.
“Today’s post-MPC press conference could prove a brake against a run. Do not expect more than warnings about the negative consequences of large moves but even this might make the market pause,” RMB said.
“Early-morning Chinese flash January purchasing managers’ index figures have beaten expectations. Watch for the eurozone and US figures later today, the first decent numbers we will have for this year.
“Over the past few weeks, however, the pattern has been that good international data have been only enough to halt rand weakness, not reverse it,” RMB said. – BusinessDay.
Online Reporter