Rand weaker ahead of GDP figures

THE RAND weakened against the dollar yesterday ahead of second-quarter gross domestic product (GDP) numbers and as safe-haven assets gained after a nuclear test by North Korea.

At 5pm, the rand was bid at R12.9747 to the dollar, 9.03c softer than at the same time on Friday.

Statistics SA releases GDP figures today and economists expect growth of 2.2 percent in the second quarter after a 0.7 percent contraction in the first quarter, but international factors weighed on the currency.

North Korea’s sixth and largest nuclear test, and reports from South Korea that Pyongyang was preparing for another missile launch, sparked warnings from Washington and a rush to safety by investors.

Bullion traded at close to above $1 334.26 (R17 257) an ounce at 6pm, having touched its strongest level since late September at $1 339.47.

The statistics agency will release July mining and manufacturing data on Thursday. Also due this week are the August Standard Bank Purchasing Managers’ Index and the South African Chamber of Commerce and Industry’s business confidence index.

Meanwhile, on the bourse, the benchmark JSE Top40 index was down 0.4 percent at 49 796.71 points, while the broader all share index shed 0.35 percent to 56 312.85 points.

Bullion producers gained on the firmer gold price, with the gold mining index up 4.6 percent.

AngloGold Ashanti advanced 5.24 percent to R137.58.

Cement maker PPC also rallied after announcing Canada’s Fairfax Africa Holdings had offered to buy a 22 percent stake in it for R2 billion. PPC shares jumped 8.81 percent to close at R5.93.