Rand up against dol­lar, but pulls shares down

Weekend Argus (Saturday Edition) - - BUSINESS -

JO­HAN­NES­BURG: The rand gained against the dol­lar yes­ter­day af­ter trade data showed a sur­plus in De­cem­ber, but the strong cur­rency weighed on min­ing shares, drag­ging the bourse down.

Gov­ern­ment bonds fir med fur­ther on short cov­er­ing and height­ened ex­pec­ta­tions for an in­ter­est-rate cut af­ter data high­lighted weak de­mand in the econ­omy.

The JSE Top-40 in­dex of blue chips was off 0.55 per­cent at 24 041.26 points and the broader All-share in­dex was off 0.45 per­cent at 26 675.95 points.

The rand was trad­ing at 7.55 against the dol­lar at 1544 GMT, 0.59 per­cent firmer than its New York close of 7.60 on Thurs­day.

Data yes­ter­day showed the trade ac­count recorded a sur­plus in De­cem­ber and the deficit for 2009 was nar­rower than the pre­vi­ous year. This eases pres­sure on the cur­rent ac­count, which has weighed on the rand.

The yield on the 2015 bond fell 5.5 ba­sis points to 8.385 per­cent, while that on the 2036 note was down 1 ba­sis point to 9.08 per­cent.

Data has this week in­creased ex­pec­ta­tions of an in­ter­est rate cut af­ter the cen­tral bank’s dovish tone ear­lier. – Reuters

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.