adminThe bourse’s response to the weaker-than-expected local February Consumer Price Index print earlier in the day was muted, as was its reaction to the announcement by the Reserve Bank’s Monetary Policy Committee that the repo rate would remain unchanged at 5 percent‚ as expected.
South Africa’s consumer inflation rate rose to 5,9 percent year on year in February‚ after measuring 5,4 percent year on year in January.
At 5pm, the all-share index closed flat (-0,07 percent) at 40 318,79 points, with general retailers the main risers lifting 1,39 percent, followed by industrials, up 0,40 percent, while miners offset these advances. Platinum counters were the laggards in the mining space, dipping 1,38 percent, followed by general resource counters — down 1,01 percent — and gold shares, which lost 0,97 percent.
“The CPI figure was higher than expected and put more pressure on the rand, which supported certain sectors of the JSE. It was such a quiet day on the market, with traders waiting for the US Federal Reserve’s policy statement at 8pm.
The statement will provide more clarity on the Federal Reserve’s position on quantitative easing, after earlier worries that monetary easing might be cut earlier than expected,” said Michael du Plooy, stockbroker at PSG Konsult in Pretoria.
On the international front, uncertainty about Cyprus’s banking situation was lingering after its parliament on Tuesday voted down a plan to tax bank deposits, a condition for a bail-out.
Dow Jones Newswires reported that European markets gained ground as investors awaited the next development in the Cyprus bail-out saga. Cyprus finance minister Michalis Sarris in Russia to discuss financial support, said talks were “very constructive” but there was still no agreement on potential loans.
Meanwhile, US stocks opened with broad gains, as investors looked to the Federal Reserve for reassurance in a week dominated by concerns about Cyprus and its bailout plan. At 5pm local time the Dow Jones Industrial Average was up 0,48 percent at 14 525,36 points.
Investors were looking to the US central bank for signs that chairman Ben Bernanke was keeping abreast of the situation, and that the Fed would continue to support the economy with its programme of asset purchases.
On the JSE, Anglo American lost 1,03 percent to R249,29 and BHP Billiton was off 1,10 percent to R275,06.
Sibanye dropped 4,57 percent to R13,15. Amplats lost 1,42 percent to R393 and Lonmin gave up 4,24 percent to R42,02. Among industrials Bidvest gained 2,65 percent to R242,50.
In the retailer sector Foschini Group gained 2,94 percent to R114,98 and Truworths garnered 1,89 percent to R91.70. — BusinessDay.
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