JSE climbs and miners surge

THE JSE tracked buoyant global markets yesterday as foreign-focused stocks gained from a dismal outlook for the rand‚ while domestically orientated stocks came under pressure.

Banks‚ retailers and insurance companies suffered the most‚ while platinum and gold miners surged‚ despite weaker precious metal prices.

Analysts said investors were increasingly pricing in the prospect that ratings agencies would downgrade South Africa’s credit status in coming months‚ following Wednesday’s medium-term budget policy statement.

Negative outlook was worsened by rating agency comments – with Fitch warning the move away from fiscal consolidation was happening faster than expected, while S& P Global Ratings said politics was trumping economic fundamentals.

Producer inflation surprised‚ coming in higher than expected.

“Along with the heightened risk of downgrades‚ it eliminates the scope for more interest-rate cuts during this cycle,” Investec economist Kamilla Kaplan said.

The JSE all-share added 0.78% to 58 576.3 points and the bluechip Top 40 rose 0.8%.

Platinum stocks gained 7.21%‚ gold miners 4.21%‚ resources 2.91% and industrials 0.77%.

Banks fell 2.4%‚ general retailers 1.48% and financials 1.2%.

British American Tobacco rose 2.21% to R924 and Richemont 1.79% to R129.78.

However, Anheuser-Busch InBev dipped 0.82% to R1 689.72. – BusinessLIVE