Rand gains as the dol­lar plunges

The Star Early Edition - - BUSINESS REPORT -

THE RAND and min­ing stocks strength­ened yes­ter­day as the dol­lar plunged on US stim­u­lus un­cer­tainty, although An­gloGold Ashanti weak­ened more than 4 per­cent af­ter say­ing it might re­trench 8 500 work­ers. The bench­mark JSE Top40 in­dex was up 0.48 per­cent at 45 504.55 points and the broader all share in­dex gained 0.32 per­cent to reach 51 596.84 points. Lon­min and Royal Bafo­keng Plat­inum climbed 3.81 per­cent to R10.90 and 2.59 per­cent to R32.90 re­spec­tively, as plat­inum firmed 0.49 per­cent at $922.70 (about R11 905) an ounce. “We’ve seen the dol­lar for the greater part of the day com­ing off against most ma­jor cur­ren­cies and that has given some of these re­source stocks some re­lief,” Paul Chakaduka, a trader at Global Trader said. By 5.15pm, the rand had gained 0.36 per­cent to R12.9725 to the dol­lar.

THE RAND and min­ing stocks strength­ened yes­ter­day as the dol­lar plunged on US stim­u­lus un­cer­tainty, although An­gloGold Ashanti weak­ened more than 4 per­cent af­ter say­ing it might re­trench 8 500 work­ers.

The bench­mark JSE Top40 in­dex was up 0.48 per­cent at 45 504.55 points and the broader all share in­dex gained 0.32 per­cent to reach 51 596.84 points.

Lon­min and Royal Bafo­keng Plat­inum climbed 3.81 per­cent to R10.90 and 2.59 per­cent to R32.90 re­spec­tively, as plat­inum firmed 0.49 per­cent at $922.70 (about R11 905) an ounce.

“We’ve seen the dol­lar for the greater part of the day com­ing off against most ma­jor cur­ren­cies and that has given some of these re­source stocks some re­lief,” Paul Chakaduka, a trader at Global Trader said.

An­gloGold Ashanti dropped 4.29 per­cent to R132.23 af­ter it said it might lay off 30 per­cent of its work­force as part of re­struc­tur­ing pro­gramme.

By 5.15pm, the rand had gained 0.36 per­cent to R12.9725 to the dol­lar, dip­ping be­low the psy­cho­log­i­cal R13 level as in­vestors sold the green­back and bought emerg­ing cur­ren­cies.

Gold, seen as a safer al­ter­na­tive in­vest­ment dur­ing times of po­lit­i­cal and fi­nan­cial un­cer­tainty, was up 0.3 per­cent to $1 248 an ounce at 5pm, help­ing lift the rand as South Africa is one of the world’s top ex­porters of the com­mod­ity.

The rand has see-sawed this week amid pol­icy un­cer­tainty ahead of the ANC’s pol­icy con­fer­ence at the week­end, eras­ing most of the gains driven by an in­tense world­wide hunt for high­yield as­sets.

Bonds were weaker, with yields at a one-month highs.

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