Rand retreats, Naspers weighs on the JSE

THE RAND weakened against the dollar yesterday, with market attention pinned on President Jacob Zuma’s future, while market heavyweight Naspers weighed on the bourse.

At 5pm, the rand bid at R11.8920 to the dollar, 4.25c softer than at the same time on Wednesday.

Zuma would meet the top six officials of the ANC over his future this weekend, the SABC said on yesterday, adding to speculation he may be removed as head of state.

Any sign that Zuma could go before his second term ends next year has tended to boost domestic assets.

“When will President Zuma go? This question is dominating South Africa and the rand at present,” Commerzbank analysts said in a research note.

“At present speculation about Zuma standing down is supporting the rand. However, the more the deadline approaches the more nervous investors might get.”

Government bonds were slightly stronger, with the yield on the benchmark 2026 instrument down 3 basis points to 8.42 percent.

On the equities market, the all share index closed down 0.42 percent to 59 258.37 points and the blue chip JSE Top40 index declined 0.31 percent to 52 453.7 points.

Naspers continued its previous session’s slide, closing 2.05 percent lower at R3 313.05.

Property shares, which have been under pressure since January on market speculation that US firm Viceroy Research would release a negative report on a listed firm, also weighed on the bourse yesterday.

Resilient Reit retreated 7.38 percent to R107.81.

On the upside, Capitec Bank recovered and closed 5.55 percent higher to R845 after its chief executive spent R1.5 million on shares in the company on Wednesday, exchange filings showed, a move hailed by one trader as a vote of confidence in Capitec.

“It’s a good way of showing that the directors are prepared to take the risk, so why wouldn’t the shareholder,” said Independent Securities trader, Ryan Woods.

Meanwhile, US stocks were lower in afternoon trading yesterday, following a string of lackluster earnings and after the Federal Reserve raised its inflation outlook for the year.

The Fed also kept rates unchanged yesterday.