Rand plum­mets as Dubai doubts kick in

Weekend Argus (Saturday Edition) - - LIFE -

JO­HAN­NES­BURG: The rand fell sharply to a three-week low against the dol­lar yes­ter­day as in­vestors dumped riskier as­sets amid debt woes in Dubai, be­fore stag­ing a strong re­cov­ery on profit-tak­ing later.

The lo­cal stock in­dex ended weaker, with gold shares the top losers.

The Jo­han­nes­burg Top-40 in­dex lost 0.84 per­cent to 24 271.03 points, while the broader All-Share in­dex slipped 0.8 per­cent to 26 808.74 points. At 1539 GMT the rand traded 1.12 per­cent firmer at 7.4111 against the dol­lar com­pared to Thurs­day’s 7.4950.

The JSE gold in­dex shed 1.89 per­cent as in­vestors’ fears of a pos­si­ble Dubai debt de­fault sent bul­lion down nearly 5 per­cent to a one-week low. Gold Fields dropped 3.23 per­cent to 107.99 rand fol­lowed by Har­mony Gold, which slid 2.96 per­cent to R81.50.

Petro­chem­i­cals gi­ant Sa­sol fell 2.36 per- cent to R290 as the oil price dropped more than 3 per­cent to about $74.

Stan­dard Bank, Africa’s big­gest bank by as­sets gained 1.26 per­cent to R96.80.

Gov­ern­ment bonds were fir mer af­ter Thur­day’s heavy sell-off, push­ing yields down, with the 2015 note dip­ping 3.5 ba­sis points to 8.465 per­cent while that for the 2036 bond was down 6.5 ba­sis points to 8.97 per­cent. – Reuters

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