RAND GAINS ON BREXIT HOPES

THE RAND firmed yesterday, supported by renewed risk appetite after potential progress on Brexit in Britain and as the dollar weakened after US consumer price data.

At 5pm, the rand traded at R14.2921 to the dollar, 0.33 percent firmer than its New York close on Monday.

Risk appetite was boosted after Brussels agreed to last-minute changes to an updated Brexit deal with British Prime Minister Theresa May on Monday night, raising hopes the government would secure a deal before the Brexit deadline in less than three weeks.

But Britain’s Attorney General Geoffrey Cox said the Brexit backstop remained unchanged despite assurances from the EU, reigniting worries that the latest tweaks would not be enough to woo rebellious British lawmakers who have threatened to vote down May’s plan again on Tuesday evening.

In fixed income, the yield on the benchmark bond due in 2026 added 1 basis point to 8.675 percent.

Stocks also gained, with drugmaker Aspen Pharmacare jumping 10.28 percent to R113.03.

The financials index rose, boosted by solid results from FirstRand, which reported a 6.1 percent rise in half-year headline earnings, outperforming rivals in retail banking. Its shares climbed 2.04 percent to R63.39.

The all share index rose 0.21 percent to 55 699.8 points, while the Top40 index firmed 0.16 percent to 49 468.43 points. I Reuters