Rand weakens, while Shoprite and AngloGold prosper
THE rand retreated against the dollar as concern grew about the state of the economy a day after the central bank slashed its growth forecast.
Shares ended a lacklustre session yesterday largely flat, helped by Shoprite which scaled a 42-month high.
The rand last traded at 14.3665 to the dollar, down 1 percent from Thursday’s close. Government bonds also weakened and the yield for debt due in 2026 added 6 basis points to 8.81 percent.
Investors are worried about the outlook for the economy after the Reserve Bank kept rates on hold saying it now expected the economy to remain stagnant in 2016.
On the stock market, shares in Shoprite rose to their highest since January 2013, extending gains after an upbeat trading report earlier this week.
Shoprite has gained more than a third this year, adding 3.6 percent in Friday’s session to R199.49.
AngloGold Ashanti also rose 3 percent to R303.94 after flagging a jump of up to 177 percent in its half-year profit.
But diversified miners Anglo American and BHP Billiton each fell 3.3 percent to R144.30 and 2.9 percent to R172.76 respectively. – Reuters