SA futures track upbeat JSE

SOUTH African futures tracked a firmer JSE yesterday, but the futures index did not match gains on the bourse, despite a stronger opening in US equity markets.

Banks and retailers, the latter up on positive economic data, led the gains.

The Dow recovered from a decline on Tuesday and was up 0.34% at 5.40pm.

At the same time, Platinum had gained 0.62%, to $1 005.81 an ounce, but gold lost 0.2% to $1 335.87. Brent crude was at $69.18 a barrel.

Domestic focus today will be on the Reserve Bank monetary policy committee’s interest-rate decision. Most economists expect the repo rate to stay unchanged, at 6.75%, as the rand remains a risk to inflation.

Some analysts, however, believe recent rand strength could lead to a dovish tone.

Any news headlines out of the ANC national executive committee meeting today will also be closely watched, as speculation as to the longevity of Jacob Zuma’s presidency continues.

Internationally, ongoing political wrangling in the US could move markets.

The US government faces a shutdown should the Congress not agree to lift the debt ceiling tomorrow.

The all-share closed 0.45% higher at 60 924.5 points and the blue-chip Top 40 added 0.54%.

Food and drug retailers rose 1.82%‚ banks 1.26%‚ general retailers 1.05%‚ industrials 0.59%‚ platinum stocks 0.53%, and financial shares 0.48%.

Property shed 0.77% and the gold index 0.24%.

The top-40 Alsi futures index closed 0.44% higher at 54 470 points.

The number of contracts traded was 22 865 from Tuesday’s 12 382.

European markets were weaker, with the DAX 30 down 0.55% and 0.3% for the FTSE 100. – TimesLIVE