JSE flat despite repo rate decision

The JSE ended Thursday’s session by losing just 0.2 points, despite markets reacting to an earlier decision by the Reserve Bank to leave the repo rate unchanged at 6.75%, and a mildly hawkish US Federal Reserve (Fed) policy statement on Wednesday.

After a two-hour delay due to technical problems, about R53bn was traded on the JSE, more than twice the usual daily amount.

Gold miners slumped more than 5% as the price of the precious metal extended Wednesday’s losses, after the Fed indicated it would begin reducing its balance sheet in October.

On Thursday, the Reserve Bank left rates on hold despite market expectations for a cut of 25 basis points, with the bank index and retailers dropping sharply after the announcement.

Capital Economics analysts said given the recent slowing of inflation, the weak state of SA’s domestic economy, and the divisions in the Bank’s monetary policy committee, the decision to leave rates on hold represented only a brief pause in the country’s loosening cycle.

The all share closed at 55,867.30 points and the blue-chip top 40 lost 0.05%. The gold index shed 4.80%, general retailers 1.99%, banks 1.6%, and financials 0.43%. Property added 1.39%, the platinum index 0.37%, and resources 0.20%.

Anglo American gained 3.02%, to R239. Harmony Gold plummeted 8.31%, to R23.84 and Sibanye dropped 5.47%, to R15.22.

Barclays Africa fell 2.02%, to R138.49‚ Standard Bank 1.85%, to R160.39 and FirstRand 1.82%, to R53.43. Capitec bucked the trend‚ closing 1.69% higher at a record R913.

Among financials, MMI Holdings shed 3.02%, to R18.60‚ Liberty Holdings 1.14%, to R103.54, and Discovery 0.34%, to R144.32.

In the property sector, Growthpoint rose 1.83%, to R25.10‚ Resilient 1.74%, to R135, and Redefine 1.67%, to R10.97.

At 5.40pm, gold was down 0.61%, to $1‚292.79/oz and platinum 0.14%, to $937.64. The top-40 Alsi futures index added 0.11%, to 49‚605 points.