Euro zone bond-buying helps boost rand
SOUTH AFRICAN assets gained yesterday with stocks logging their first weekly gain in three weeks, while the ECB’s continued buying of euro zone government bonds helped boost appetite for the rand and national debt.
Shares of African Bank Investments surged on strong October-November numbers, while higher gold prices lifted miners.
Shares of Standard Bank fell for a second straight session after Africa’s largest lender warned it expected full-year earnings to drop by as much as 13 percent.
Investors largely shrugged off weakerthan-expected US payrolls data released during the trading session, with some betting that weak data would lead to more stimulus.
Joburg’s Top-40 index finished up 0.87 percent at 27 933.41, edging up 0.72 percent on the week. The broader All-Share index gained 0.74 percent to 31 376.93. Shares of African Bank Investments, surged 5.2 percent to R37.80. The mass-market lender said October-November credit sales were 60 percent higher than a year earlier.
At 15.47 GMT, the rand was trading at 6.8677 to the dollar, 0.54 percent stronger than its previous close of 6.9050. – Reuters