Rand tumbles, JSE up on bargain buying

THE RAND retreated more than 1.5 percent yesterday after the public protector agency recommended changing the constitution to force the central bank to promote economic growth rather than currency and price stability.

By 5.46pm, the rand was trading 1.13 percent weaker to the dollar at R12.95, having hit a session low of R13.0525.

In her recommendations, Public Protector Busisiwe Mkhwebane said the constitution should be changed to make promoting balanced and sustainable economic growth the SA Reserve Bank’s primary objective. The central bank said it would respond later.

“The market doesn’t like it because they want to interfere in institutions like the Reserve Bank,” said Treasury One chief currency dealer, Wichard Cilliers

Government bonds also fell, with the yield for the benchmark instrument due in 2026 rising.

Meanwhile, stocks gained as oversold shares attracted buyers.

The benchmark JSE Top40 index was up 1.95 percent at 45 381.2 points and the broader all share index rose 1.54 percent to close at 51 615.9 points.

The blue chip Top40 index closed lower in the previous two sessions after dropping to its lowest in nearly two-and-a half years low on Thursday. A revised mining charter had sparked a sell-off in mining shares.

Barclays Africa Group closed the day down 1.12 percent to R144.86 after reversing some of its losses in the session.

“Our market is just bouncing on the back of oversold levels. Its just a bit of a broad-based rally,” said BP Bernstein trader,Vasili Tirasis.

On the downside, AngloGold Ashanti retreated 5.41 percent to close at R130.83.