JSE lower ahead of US rates move

The JSE all share closed weaker on Wednesday in cautious trade ahead of the US Federal Reserve’s rate decision.

Despite the lower overall market‚ platinum stocks gained on a metal price that has remained buoyant‚ above $800 an ounce‚ for more than a week now.

Global miners were lower on a slightly firmer dollar‚ while the rand held up well.

The Dow was a little higher at the JSE’s close‚ while European markets were mixed.

Investors have avoided big bets ahead of the US Fed’s monetary policy decision, which was due later in the day.

Analysts expect the rand to remain in a fairly narrow range, following the Reserve Bank’s hawkish forward view at last week’s monetary policy committee meeting‚ when rates were kept on hold.

Focus now turns to Thursday’s producer inflation numbers – widely expected to have moderated slightly in August from July‚ with analysts citing the government’s fuel price reprieve and subdued food inflation as contributing factors.

Volumes on the JSE were lower than the daily average‚ at R13bn‚ as sentiment remained cautious.

TreasuryOne dealer Andre Botha said ratings agency Fitch’s statement on President Cyril Ramaphosa’s stimulus plan was also not helpful.

“Fitch’s view that this will not stimulate growth as much as indicated will be a factor when the ratings agencies review SA’s credit rating.”

The all share closed 0.56% lower at 56‚570.2 points and the top 40 dropped 0.59%.

The gold index shed 3.25%‚ resources 1.89%‚ food and drug retailers 0.45%‚ property 0.37% and banks 0.21%.

Platinums rose 2.65%. –