Positive global mood lifts SA markets

South African markets had a decent run this week, taking their lead from a generally positive mood on global markets.

The All Share index crossed the 53000-point mark for the first time since June 23 - the day the UK voted to leave the EU and shook financial markets. The benchmark index gained 3.53% on the week, which also saw financial and industrial stocks recover from the Brexit shock.

Miners continued their fine form, which stretches back to January, despite relatively range-bound commodity prices.

Anglo American topped the winners' board among the Top 40 index, gaining 13%, which translated into about R24-billion. Badly battered local stocks that have sizable UK exposure also enjoyed a rally.

"Our own market is meandering along, although it has had a firmer undertone with global markets giving direction," said Craig Pheiffer, head of private client asset management at Absa Wealth and Investment Management.

"We continue to see net inflows from foreigners into both equity and bond markets and the stronger rand has been the restraint that's kept our market from moving higher."

The rand rallied to its best level to the dollar in more than two months.

It hit highs of R14.18/$ before slipping back to R14.38/$ by Friday.

The consumer price index, which will be released on Wednesday, is expected to have picked up to an annual rate of 6.2% in June from 6.1% in May. The data will help shape the Reserve Bank's decision on interest rates on Thursday.

"Given the downside surprise in the past two inflation prints and the recent improvement in the rand exchange rate, we believe the MPC [monetary policy committee] is likely to keep rates unchanged at its rate announcement. However, the above-target and still rising inflation rate suggests there is room for another rate hike later this year," FNB economists said in a note.