South African stocks rose to a fresh record closing high on Wednesday as banks piled on more gains thanks to an upturn in global sentiment towards the sector, but the rand failed to break out of recent ranges. Financials and retailers were also assisted by the growing belief that the central bank will not raise interest rates again next week.
Government bonds firmed on the same view. Resource stocks ran out of steam, though, after benefiting for weeks from the commodity rally. For the third consecutive session, the JSE All-share index ended at an all-time high and closed 0.98 percent stronger at 30,730.10 points. The JSE top-40 blue chip index closed 0.97 percent firmer at a historic 27,990.11 points. "There seems to be a return into financials or interest rate sensitive sectors. I guess that's after they turned on world banks as well," said Greg Potter, a dealer at Nedsec.
The country's four biggest banks also stretched the previous session's gains, as investors took their cue from a rebound in banks abroad. Standard Bank again was one of the most popular blue chips and the top gainer among the big four banks. It rose by 4.76 percent to 110 rand.
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