Tharisa’s price surge pushes JSE higher

The JSE closed firmer on Tuesday, along with global markets, as investors fixed their eyes on another key US inflation report this week.

Investors will gain further insight into the path of US inflation when the Federal Reserve’s (Fed) preferred measure of inflation, the personal consumption expenditures (PCE) price index, for February is released on Friday. Due to the Easter long weekend, the markets’ reaction will be seen the following week.

The report will come after consumer and producer inflation for February came in hotter than estimates. While progress on bringing inflation down has become bumpier, the broad expectation among traders is for the Fed to begin cutting interest rates in June. Some even saw a slight possibility of it starting at its meeting next week, reported Bloomberg.

“Markets await the US PCE price index later in the week, which could provide further guidance to the Fed’s forward thinking on interest rates,” said TreasuryOne currency strategist Andre Cilliers.

The JSE all share gained 0.44% to 73,608 points and the top 40 0.56%. Industrials added 1.18%, listed property 0.35%, retailers 0.27% and financials 0.16%. Industrial metals lost 1.09%, resources 0.58%, food producers 0.35%, precious metals 0.21% and banks 0.15%.

At 5.40pm, the Dow Jones industrial average was 0.3% firmer at 39,431 points and the S&P 500 gained 0.29%. In Europe, the FTSE 100 was little changed, while France’s CAC 40 added 0.22% and Germany’s DAX 0.55%.

Chrome and platinum group metals miner Tharisa Minerals led the gains on the JSE, gaining 11.51% to R14.05 — the most since September 2021 — after the miner disclosed plans to buy back up to $5m of its shares.

Local focus is on the SA Reserve Bank’s monetary policy committee (MPC) meeting this week. Governor Lesetja Kganyago is due to announce the latest interest rate decision on Wednesday, with economists expecting it to remain unchanged. The market will be seeking clues about when interest rate cuts may be implemented.

The Bank has left the repo rate unchanged at 8.25% since May 2023 after a cumulative increase of 475 basis points since the start of the ratehiking cycle in November 2021.

At 5.46pm, the rand had weakened 0.6% to R18.9962/$, 0.58% to R20.5789/€ and 0.55% to R23.9916/£. The euro was little changed at $1.0833.

Gold gained 0.19% to $2,175.24/oz and platinum 0.4% to $905.6/oz. Brent crude was 0.24% weaker at $85.92 a barrel.