Rand ral­lies on court rul­ing, bourse dips

The Star Early Edition - - PRICES - Reuters

THE RAND ral­lied yes­ter­day as in­vestors cheered a con­sti­tu­tional court rul­ing that par­lia­ment could hold a se­cret bal­lot in a no-con­fi­dence vote against Pres­i­dent Ja­cob Zuma, who has said such a vote would be un­fair.

By 6pm the rand gained 0.7 per­cent to R12.9950 to the dol­lar, dip­ping be­low R13 for the first time since Mon­day.

De­spite data sig­nalling the econ­omy could bounce back from re­ces­sion, in­vestor sen­ti­ment has been clouded by po­lit­i­cal tur­bu­lence.

The rand slipped to a three­week low on Mon­day as a gov­ern­ment anti-graft body rec­om­mended a change to the cen­tral bank’s man­date on tar­get­ing cur­rency and in­fla­tion sta­bil­ity.

A push back from the bank and yes­ter­day’s court rul­ing on a no-con­fi­dence vote eased in­vestor con­cerns, lift­ing de­mand for the cur­rency.

Wichard Cil­liers, chief dealer at Trea­sury One, said an­tic­i­pa­tion of the court rul­ing lured buy­ers to the rand and helped shake off slug­gish de­mand for emerg­ing mar­ket as­sets.

Mean­while, shares dipped. The bench­mark JSE Top40 in­dex fell 0.59 per­cent to 44 944.65 points, while the all share in­dex was down 0.64 per­cent to close at 51 072.86 points.

“The mar­ket has been fairly neg­a­tive, we’ve had our fu­tures edg­ing down all day and ba­si­cally peo­ple have been sell­ing off the rest of the mar­ket,” said Cratos Cap­i­tal stock bro­ker, Yusuf Mola. Cax­ton and CTP Pub­lish­ers and Prin­ters dropped 6.77 per­cent to R11.16 af­ter the Com­pe­ti­tion Tri­bunal re­jected Cax­ton’s ap­pli­ca­tion for leave to in­ter­vene in hear­ings about the merger between Me­dia24 and Novus Hold­ings .

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