OWN CORRESPONDENT, Johannesburg | Monday 4.30pm.
LOCAL stocks advanced in Monday’s dealings on the back of firmer world markets – but Central Bank Governor Tito Mboweni’s remarks about a possible interest rate hike are likely to cap the bourse.
Gold shares were lifted by a rallying bullion price while a firmer rand was also supporting key indices.
By close of play the all-share was 0,41% or 31 points up. Industrials, however took a knock, finishing 0,17% or 14 points weaker. Financials closed 0,87% or 83 points in positive territory.
Golds shares ended the day 2% or 20 points good. At 4pm, gold was trading at $283,55 an ounce on international markets.
”Obviously international markets are strong following Nasdaq and Wall Street and we are having a spillover from there. The gold price will help but the market is maybe a bit muted following Mboweni’s comments,” a trader said.
Mboweni said on Sunday that local interest rates may be on the rise to beat back recent price increases and that South Africans needed to fasten their seatbelts as the central bank sets its sights on reaching its 3% to 6% percent inflation target.
”I don’t know if there will be a rate increase but figures seem to suggest that inflation expectations are picking-up and so consumers must ready themselves…I’m just saying watch out,” he said in Switzwerland where he is attending the Bank for International Settlements’ annual meeting.
The JSE has been jittery as worries about higher interest rates increased last week with the release of worse-than-expected producer price index data.
Among early hot stocks on Monday, technology stocks gained ground, lifted by the US’s tech-heavy Nasdaq composite index jumped more than 6% on Friday.
Shares in Dimension Data, the country’s largest IT company by market capitalisation, advanced 2,17% to R51,80 on volume of almost a million shares while Datatec stock added 2,57% also to R51,80. — Reuters