Rand slides, gold com­pa­nies lift bourse

The Star Early Edition - - PRICES - Sibanye Gold An­gloGold Ashanti Naspers,

THE RAND weak­ened yes­ter­day, fol­low­ing in the foot­steps of its emerg­ing mar­kets peers on loom­ing threats about tighter global mone­tary con­di­tions.

The dol­lar hit a four-month high against the yen and world’s top bonds and emerg­ing mar­ket cur­ren­cies were back un­der pres­sure yes­ter­day, on bets for higher in­ter­est rates in a small but grow­ing group of ma­jor economies.

At 5pm, the rand was bid at R13.5692 to the dol­lar, 13.03c softer than at the same time on Mon­day, 0.65 per­cent weaker than its New York close on Mon­day, but off a trough of R13.6250 hit ear­lier in the ses­sion. Mo­men­tum in­di­ca­tors tracked by chartists showed it was over­sold, ac­cord­ing to Reuters’ data. This sug­gests it could get tech­ni­cal sup­port in this area in com­ing days.

Mean­while, stocks posted mod­est gains, led by gold min­ing shares thanks to the weaker rand, which boosts dol­lar-de­nom­i­nated prof­its when brought back home.

The lo­cal bul­lion sec­tor gained 2.09 per­cent with adding the most to the in­dex, climb­ing 3.68 per­cent to R15.76 while rose 1.71 per­cent to close at R132.96.

Africa’s big­gest listed com­pany by mar­ket size, also fea­tured on the gain­ers’ list, ris­ing 2.68 per­cent to R2 585, track­ing its Chi­nese money spin­ner Ten­cent.

“Naspers was up on the back of Ten­cent clos­ing strong in Hong Kong overnight, so that is mak­ing a strong con­tri­bu­tion to the in­dex’s over­all gain,” said Av­ior Cap­i­tal Mar­kets eq­uity sales trader, Jac­ques Pot­gi­eter.

The bench­mark JSE Top40 in­dex was up 0.47 per­cent to 46 192.63 points, while the wider all share in­dex ended 0.36 per­cent higher at 52 376.38 points.

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