RAND STRONGER, JSE WEAKER

THE RAND firmed on Friday as days of unrest began to subside and communities took stock of looting and violence in which at least 212 people were killed.

At 5.55pm, the rand traded at R14.41 against the dollar, 1.05 percent firmer than its previous close.

The country has been hit by some of the worst violence in decades, after the jailing of former president Jacob Zuma.

The government has deployed more soldiers in two provinces where security forces were struggling to quell looting, arson and violence.

From this week, investors will turn their focus to the upcoming monetary policy committee meeting next Thursday, where the central bank is expected to keep the repo rate on hold at 3.5 percent.

“Economic growth concerns are likely to dominate, as the enforcement of restrictions in response to the country’s third wave of (coronavirus) infections as well as the disruption stemming from the protest action have together dimmed the recovery prospects,” Investec economist Kamilla Kaplan said in a note.

In fixed income, the yield on the benchmark 2030 government bond dipped 2 basis points to 8.935 percent, reflecting firmer prices.

In the equities market, stocks closed weaker, with the JSE broader all share index retreating 1.49 percent at 66 529.53 points, while the blue-chip Top40 index was down 1.63 percent to 60 437.58 points.

Mining firms were the biggest drag to the bourse, with the index falling 3.18 percent as gold, silver, platinum and palladium prices fell on a stronger dollar and rebounding yields.

Bucking the trend was scandal-hit South African retailer Steinhoff International, which jumped 12.66 percent to R1.78 after it said that it was increasing the amount of its proposed lawsuit settlement offer.