JSE extends record run‚ with banks and retailers favourites

THE JSE closed higher for the ninth consecutive session yesterday‚ with interest-rate sensitive stocks – including banks and retailers – continuing to benefit from a stronger rand.

The US dollar was on the back foot against emerging-market currencies‚ after recently rallying due to optimism over US economic growth and the prospect of interest-rates hikes.

Analysts warned‚ however‚ that the rand was at risk in the longer term due to political factors‚ which may further dampen prospects for the Reserve Bank’s cutting rates again this year.

The rand was set to continue its momentum against the dollar‚ following improved risk appetite from investors after Catalan president Carles Puigdemont seemed to back away from his threat to declare immediate independence from Spain‚ FXTM research analyst Lukman Otunuga said.

But yesterday’s main risk event was the awaited release of September’s US Federal Reserve’s federal open market committee meeting minutes.

The market was also on watch for tomorrow’s US inflation data, which could give further clues on interest rates in the US.

The JSE all-share added 0.24% to 57 770.7 points and the top 40 0.15%.

Banks rose 1.56%‚ general retailers 1.23%‚ industrials 0.79%‚ financials 0.71% and the property index 0.57%.

Gold miners fell 2.68% and resources 1.87%.