Rand holds out against the odds

The rand strengthened to R13.40/$ in early evening trade on Thursday as the domestic currency continued to surprise to the firmer side.

Forex trading was cautious as the market awaited new developments after calls for President Jacob Zuma to step down intensified in the week.

The Constitutional Court allowed parties to file opposing motions of no confidence in Zuma, ahead of a vote of no confidence expected later in April.

The rand ended a volatile week 2.46% stronger against the dollar as the currency reversed sharp losses in the preceding weeks following S&P Global and Fitch’s downgrades.

The domestic currency reached a best intraday level of R13.3983/$ from R13.4894 earlier on Thursday despite a stronger dollar. The euro was at $1.0631, from $1.0663.

The JSE ended the shortened week marginally in the red on Thursday as industrials and resources retreated.

The all share closed 0.08% lower at 53,510.20 and the blue-chip top 40 lost 0.22%. Resources were down 0.46% and industrials shed 0.24%. The gold index firmed 3.34%. General retailers rose 3.11%. Platinums added 2.41% and banks firmed 1.31%. Food and drug retailers added 1.21%.

The all share was 1.24% higher earlier in the week, the third consecutive week of gains. The index is up 5.64% for the year so far.

BHP Billiton lost 2.10% to R213.20 and Anglo American shed 1.45% to R196.63.

British American Tobacco retreated 1.68% to R903.55.

Among gold stocks, Gold Fields jumped 6.63% to R55.51 and Sibanye gained 6.43% to R35.40. PSG was up 1.48% to R252.94. Bonds were slightly firmer after Finance Minister Malusi Gigaba said he would try to convince ratings agency Moody’s that SA would maintain fiscal discipline. The yield on the R186 was at 8.815% from 8.84%.

The local near-dated top-40 Alsi futures index was up 0.23% at 47,369 points. The number of contracts traded was 22,675 from Wednesday’s 28‚709. /