Stocks listed on the Johannesburg Stock Exchange (JSE) are set to recover in 2010, according to a report by the investment research team at BOE Private Clients, with consumers also set to get some relief from declining inflation.

"Inflation will decline substantially and oil prices are not expected to return to previous heady levels, which will allow some relief in terms of interest rate cuts," reported Fin24.com, quoting BOE’s report.

BOE Private Clients said that while trading is likely to remain difficult on the JSE in 2009, the outlook is more positive going forward, particularly with the 2010 World Cup around the corner.

"For 2010, the outlook becomes a lot more cheery - the world should be showing signs of recovery and we will have the FIFA World Cup to look forward to," it said.

According to Fin24, BOE also highlighted the defensive shares it expects to perform best in 2009, which include retailer Spar, health, life and wellness group Discovery, coal explorer Keaton Energy and broadcasting and entertainment group Naspers.