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0 News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/south-african-equities-see-volatility-amid-inflation-data-and-sector-losses/
South African equities are poised for another volatile trading session following the release of new inflation data, as investors react to shifting economic indicators.
The JSE FTSE All Share Index dropped by nearly 0.25%, a sign of cautious investor sentiment and some profit-taking after a series of gains in recent days. The retail trade, producer manufacturing, and transportation sectors saw the biggest declines, falling 1.73%, 1.21%, and 1.01%, respectively, which dragged down the overall market performance.
In contrast, sectors such as communications, healthcare, and industrial services showed resilience, rising 2.11%, 0.95%, and 0.85%, respectively, and helping to offset some of the losses.
On the currency front, the South African rand remained relatively stable after inflation data revealed a slight uptick to 3.0% year-on-year in December, from 2.9% in November. This stable currency environment is seen as favorable for South African stocks, with the potential to attract foreign investors looking for a more predictable economic backdrop.
Retail sales data from November showed a strong performance, buoyed by factors such as interest rate cuts, declining inflation, and pension reforms. These developments are expected to benefit the retail sector, which could see further growth as consumer confidence and spending improve. The inflation forecast for 2025, with expectations of remaining below the central bank’s 4.5% target, contributes to a more positive outlook for the stock market, easing concerns over a potentially tighter monetary policy.
Additionally, the trend in long-term government bond yields remains downward, which could continue to provide support for equities if this pattern persists. As the market absorbs these economic updates, attention will likely focus on whether sectors like retail, healthcare, and industrial services can continue to support market stability amid broader volatility.
News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/south-african-equities-see-volatility-amid-inflation-data-and-sector-losses/
