SA shows confidence in economic prospects
THE rand was lifted yesterday after the Treasury said it issued a pair of new dollar bonds worth $3 billion, while stocks faltered as Deutsche Bank’s woes tipped global share markets into a tailspin.
The rand was almost 1 percent firmer at 1530 GMT, fetching $13.75, after the announcement of the bond issuances, which were more than 2.5 times oversubscribed
“The strong subscription shows confidence in the medium/long term economic prospects. Some of the major structural barriers to growth – such as power supply – are being slowly sorted, and the Zuma administration will end in 2019,” said Augustine Booth-Clibborn, an analyst at Africa Risk Consulting.
The yield for the benchmark government bond due in 2026 was down 2 basis points to 8.66 percent.
Stocks fell in line with European peers knocked by the Deutsche Bank fall out.
Johannesburg’s benchmark Top-40 index ended 1.45 percent lower at 45.425.59 while the wider All-share index shed 1.42 percent to end at 51.949.83, reversing two consecutive sessions of gains. – Reuters