JOHANNESBURG, March 28 (Reuters) – South African stocks
ended slightly lower on Wednesday as market momentum slowed
after three straight days of gains while investors paused ahead
of a central bank decision on interest rates this week.
A downgrade on the outlook for Africa’s largest economy by
SP also weighed on sentiment. The ratings agency said it was
worried not enough was being done to combat the country’s
chronic unemployment.
“All key exchanges are near historical highs, which means
the risk and reward play is tighter,” said Martin Lentsoane, a
trader at Newstrading.
The JSE Top-40 index dipped 0.81 percent to
29,715.14 and the broader All-share index closed 0.7
percent lower at 33,621.93.
Lentsoane said retailers and industrials were holding up
well this year, as were banks, but resources had slipped.
Harmony Gold Mining was among the three worst
performers, shedding almost 2.4 percent, with diversified
resources group Exxaro falling by about the same
percentage.
On the plus side, supermarket chain Shoprite was
the top gainer, having added 3.2 percent by the close, while
cellular network provider Vodacom added 1.2 percent.
Investors have been reluctant to take large positions ahead
of the central bank’s rate decision on Thursday. Economists are
predicting rates will remain unchanged from the current 5.5
percent.
Market players will be watching if the bank takes a hawkish
stand on inflation, which breached its 3-6 percent target in
November and has been above the band since then.
Decliners outnumbered advances 173 to 107 with 66 shares
unchanged. A total of 164 million shares changed hands,
preliminary data showed, below a 200-day moving average of about
240 million shares.
(Reporting by Sherilee Lakmidas; Editing by Jon Herskovitz)
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