SARAH BULLEN, Cape Town | Friday 5.15pm
THE Johannesburg Stock Exchange had a late rally on Friday afternoon after its morning session was held back by a falling rand and concern over comment by Reserve Bank Tito Mboweni’s that higher oil prices are stoking local inflation. Investors showed concern in rand and government bond positions after the warning from the Bank’s Monetary Policy Committee which said it has put its interest rate outlook on a ”neutral to tightening” footing.
Losses were reversed in the afternoon as the US market rocketed on opening after a government report showing job growth slowed in February was perceived as taking pressure off the Federal Reserve to raise interest rates aggressively. Also coming into the market in the afternoon were bargain hunters, snapping up stock that looked undervalued.
This gave a boost to local market, pushing them to a firmer close with the all share index up 0,03% to end the week at 8014. Leading the market higher were rand-hedge stock, with the all gold index up 0,11% and resources up 0,30%. The industrial index closed the day 0,11% higher, while the financial board dipped 0,46%.
The overall market is seen drifting lower next week as wary investors keep the market at arm’s length amid the fresh inflationary and rate concerns despite widespread perceptions that it is oversold. — additional reporting by Reuters