Upbeat data lifts investor sentiment to SA
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