Rand re­cov­ers, bourse inches lower

The Star Early Edition - - PRICES - Reuters An­gloGold Ashanti Har­mony Gold African Oxy­gen Naspers

THE RAND re­cov­ered from three­week lows yes­ter­day as fears of pos­si­ble credit-rat­ing down­grade eased, while stocks fell on profit-tak­ing af­ter they reached record highs.

At 5.07pm, the rand traded at R13.2275 to the dol­lar, 0.4 per­cent firmer than its New York close on Tues­day.

The rand started the day by drop­ping to a three-week low of R13.32, ex­tend­ing losses suf­fered in the pre­vi­ous two ses­sions as it broke through tech­ni­cal sup­port lev­els at R13, R13.12 and R13.30.

The rand took a hit af­ter Moody’s, the last of the top three rat­ings firms to rank South Africa in­vest­ment grade, warned on Mon­day that pres­sure seemed to be grow­ing on the cen­tral bank, and the Trea­sury, to im­ple­ment ex­pan­sion­ary poli­cies .

Moody’s is ex­pected an­nounce a re­view on Au­gust 11.

“We think that the down­grade just two months af­ter the pre­vi­ous one is un­likely,” 4Cast an­a­lysts said in a note. “We think that the cur­rency will re­cover in the next few days, with the USD/ZAR pos­si­bly fall­ing be­low the (R)13 sup­port level.”

On the stock mar­ket, the bench­mark JSE Top40 in­dex fell 0.46 per­cent to 48 811.07 points and the all share in­dex was down 0.34 per­cent to 55 200.49 points.

The all share in­dex had ex­tended its gains to a record 55 554.23 points yes­ter­day, af­ter gain­ing on Mon­day on for­eign flows into eq­ui­ties and off­shore earn­ings. Among the big­gest fall­ers,

dropped 3.88 per­cent to R127.95,

low­ered 3.42 per­cent to R22.84, was down 3.41 per­cent to R18.72 and re­treated 2.01 per­cent to end the ses­sion at R2 850.

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