Up­beat data lifts in­vestor sen­ti­ment to SA

Weekend Argus (Saturday Edition) - - BUSINESS -

SOUTH AFRICA’S rand and govern­ment bonds gained af­ter up­beat eco­nomic data lifted in­vestor sen­ti­ment.

But stocks fell amid profit-tak­ing af­ter six days of gains and de­spite higher com­mod­ity prices and firmer global eq­ui­ties.

Jo­han­nes­burg’s Top-40 blue-chip in­dex lost 0.58 per­cent to 28 173.79 points and the broader All-share in­dex gave up 0.48 per­cent to 31 617.66 points. In­vestors have been snap­ping up stocks helped largely by higher com­mod­ity prices and views that the global econ­omy is on a firmer foot­ing. The blue chip in­dex has gained 5.5 per­cent so far this month and just over 13 per­cent this year.

The rand gar­nered early sup­port from the cur­rent ac­count and busi­ness con­fi­dence num­bers, then later tracked euro/dol­lar moves. The third quar­ter cur­rent ac­count deficit widened to 3.0 per­cent of GDP from a 2.5 per­cent deficit pre­vi­ously, the Re­serve Bank said.

The rand has mostly been trad­ing side­ways, fail­ing to break key lev­els in ei­ther di­rec­tion and some an­a­lysts see this trend go­ing into year-end as deal­ers’ in­ter­est wanes ahead of the De­cem­ber break. – Reuters

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