JSE closes marginally higher as retailers retreat

THE JSE closed marginally higher yesterday as a promising start to the session fizzled out in late trade on a firmer rand and lower commodity prices.

The market was little moved ahead of the US Federal Reserve two-day policy meeting‚ which ends today.

The world’s most influential central bank is expected to raise the repo rate by at least 25 basis points‚ with the market having priced in a 90% possibility of this happening.

Industrials were the main drivers on the day as Naspers regained some of Monday’s losses. Global luxury goods group Richemont was firmer‚ but other rand hedges had a negative day.

Retailers were sharply weaker ahead of the release of April retail sales data today, with disappointing results from diversified retailer Brait adding to the negative sentiment.

Miners responded negatively, with the gold index suffering the biggest losses.

The all-share has retreated from its May highs as the market prices in low GDP growth.

“A lot will depend on the next set of results from companies for the period to end-June‚ which should be available in August‚” Stanlib retail investment director Paul Hansen said.

The all-share closed 0.12% higher at 51 625.1 points and the blue-chip top 40 gained 0.21%.

Industrials rose 0.33%‚ platinums 0.22% and financials 0.06%.

The gold index dropped 2.28%‚ general retailers 1.13%‚ food and drug retailers 1% and resources 0.41%.