JSE closes firmer ahead of US Fed rate announcement

The JSE closed firmer on Wednesday as industrial counters provided support while investors awaited the outcome of the US Federal Reserve’s monetary policy meeting.

Global markets are focused on the outcome of the meeting‚ looking for signals pointing to when the bank will introduce its first interest rate hike in nearly a decade.

Fed chairwoman Janet Yellen is scheduled to hold a press conference at about 8.30pm local time.

Global market participants are trading cautiously ahead of the Fed meeting and as Greek debt repayment uncertainty causes market jitters.

At 5pm the JSE closed 0.58% firmer at 51‚595.70 points‚ with the blue-chip top 40 gaining 0.67%.

The industrial index closed 0.99% firmer while gold miners led the losers‚ ending 1.42% lower due to weaker commodity prices.

European markets were flat to lower in late trade‚ with the Paris CAC 0.35% lower as Greek debt repayment issues weighed on European market sentiment.

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IG analyst Shaun Murison said it had been an interesting day as stocks had rebounded from the recent run of weakness despite the looming catalysts.

"Between tonight’s Federal open market committee (FOMC) meeting‚ tomorrow’s consumer inflation data expected out of the US‚ and as the European Union meets for

Greece’s ‘last’ chance to secure bail-out funds‚ the volatility in markets is likely to escalate into tomorrow‚" Mr Murison said.

Local data released on Wednesday showed inflation remained well within the Reserve Bank’s targeted range‚ he said.

Retail trade sales increased 3.4% year on year in April.

Investment company Brait’s results "pleased" markets coming in at the upper end of the trading statement-guided range released previously.

The 141% increase in net asset value per share was largely as a result of the Pepkor deal realised with Steinhoff International‚ Mr Murison said.

Brait closed 2.34% higher at R111.

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Mediclinic released a "vague" announcement that it was in talks that could materially affect the company’s share price‚ Mr Murison said. The counter closed 0.4% firmer at R99.40.

Among other individual shares on the JSE‚ Anglo American was off 1.31% at R189.42 and Kumba Iron Ore shed 5.85% to R161. Assore slumped 6.33% to R108.19.

Oil company Sasol gained 2.25% to end at R427.64 amid a firmer Brent crude price.

Industrial and rand hedge counter British American Tobacco gained 3.72% to R683.50 and SAB Miller Plc added 2.75% to R652.45.

Gold Fields shed 3.26% to R37.64‚ while Harmony bucked the trend in the sector‚ adding 3.06% to R16.49.

- BDLive