Rand, bonds tum­ble, stocks ad­vance

Saturday Star - - INSIGHT -

THE RAND tum­bled more than 2 per­cent yes­ter­day, while bonds also weak­ened sharply as in­vestors who had bought the as­sets cheap ear­lier in the week sold out, while firm US data also added pres­sure.

Stocks were firmer, as com­pa­nies that earn most of their rev­enue out­side the coun­try got a lift from the weaker cur­rency as its boosts their rand-de­nom­i­nated earn­ings.

At 5pm, the rand bid at R14.2238 to the dol­lar, 22.50c softer than at the same time on Thurs­day, ac­cel­er­at­ing its slide late in the ses­sion af­ter US man­u­fac­tur­ing data beat es­ti­mates and lifted the green­back.

Traders said the rand was knocked by a com­bi­na­tion of firmer US data and in­vestors squar­ing short po­si­tions ahead of the week­end af­ter the rand’s sur­prise rally to be­low the R14 to the dol­lar tech­ni­cal mark ear­lier in the week.

Govern­ment bonds also took a hit, with the yield on the bench­mark govern­ment bond due in 2026 jump­ing 24 ba­sis points to 9.28 per­cent.

On the stock mar­ket, the bench­mark JSE Top40 in­dex rose 0.67 per­cent at 53 198.96 points, while the all share in­dex was up 0.52 per­cent to 59 638 points. – Reuters

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