Rand tum­bles, JSE up on bar­gain buy­ing

The Star Early Edition - - PRICES - Reuters Bar­clays Africa Group

THE RAND re­treated more than 1.5 per­cent yes­ter­day af­ter the pub­lic pro­tec­tor agency rec­om­mended chang­ing the con­sti­tu­tion to force the cen­tral bank to pro­mote eco­nomic growth rather than cur­rency and price sta­bil­ity.

By 5.46pm, the rand was trad­ing 1.13 per­cent weaker to the dol­lar at R12.95, hav­ing hit a ses­sion low of R13.0525.

In her rec­om­men­da­tions, Pub­lic Pro­tec­tor Bu­sisiwe Mkhwe­bane said the con­sti­tu­tion should be changed to make pro­mot­ing bal­anced and sus­tain­able eco­nomic growth the SA Re­serve Bank’s pri­mary ob­jec­tive. The cen­tral bank said it would re­spond later.

“The mar­ket doesn’t like it be­cause they want to in­ter­fere in in­sti­tu­tions like the Re­serve Bank,” said Trea­sury One chief cur­rency dealer, Wichard Cil­liers

Govern­ment bonds also fell, with the yield for the bench­mark in­stru­ment due in 2026 ris­ing.

Mean­while, stocks gained as over­sold shares at­tracted buy­ers.

The bench­mark JSE Top40 in­dex was up 1.95 per­cent at 45 381.2 points and the broader all share in­dex rose 1.54 per­cent to close at 51 615.9 points.

The blue chip Top40 in­dex closed lower in the pre­vi­ous two ses­sions af­ter drop­ping to its low­est in nearly two-and-a half years low on Thurs­day. A re­vised min­ing char­ter had sparked a sell-off in min­ing shares.

closed the day down 1.12 per­cent to R144.86 af­ter re­vers­ing some of its losses in the ses­sion.

“Our mar­ket is just bounc­ing on the back of over­sold lev­els. Its just a bit of a broad-based rally,” said BP Bern­stein trader,Vasili Ti­ra­sis. On the down­side, An­gloGold

Ashanti re­treated 5.41 per­cent to close at R130.83.

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