Rand slides on in­vestor cau­tion, JSE up

The Star Early Edition - - BUSINESS NEWS - Reuters

THE RAND weak­ened yes­ter­day as in­vestors looked else­where in high-yield emerg­ing mar­kets for carry-trade op­por­tu­ni­ties.

At 5pm, the rand was bid at R13.0336 to the dol­lar, 6.93c softer than at the same time on Mon­day, just shy of its weak­est level in three ses­sions as a breach of the 13 mark con­firmed tech­ni­cal in­di­ca­tors point­ing to a bear run in the com­ing days.

Cau­tion ahead of a meet­ing by US cen­tral bank also saw slug­gish liq­uid­ity and a sell bias on the rand, more so af­ter US con­sumer con­fi­dence came in bet­ter than mar­ket fore­casts.

“Al­though the rand has per­formed re­siliently de­spite var­i­ous lo­cal fac­tors, it has thus far failed to make any new lows,” Reezwana Su­mad, an an­a­lyst at Ned­bank, said in a note.

“Tech­ni­cally, this would sug­gest a sig­nif­i­cant pos­si­bil­ity of a test to­ward the up­per end of the pre­vail­ing range,” Su­mad said.

Bonds were slightly weaker, with the yield on the bench­mark bond due in 2026 ris­ing.

Mean­while, stocks gained yes­ter­day as Kumba Iron Ore rose af­ter re­sum­ing div­i­dend pay­ments.

The bench­mark, the JSE Top40 in­dex gained 0.34 per­cent to 48 223.29 points, while the broader all share in­dex edged up 0.24 per­cent to 54 499.11 points.

Shares of Kumba Iron Ore,a unit of An­glo Amer­i­can, ad­vanced 17.34 per­cent to R203 af­ter the com­pany re­ported a 53 per­cent jump in half-year earn­ings.

The iron ore pro­ducer said it was re­sum­ing div­i­dend pay­ments, which were halted in 2015, as part of a pol­icy to re­turn ex­cess cash to share­hold­ers. An­glo Amer­i­can shares also gained, ad­vanc­ing 7.49 per­cent to close at R199.55.

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