SA shows con­fi­dence in eco­nomic prospects

Weekend Argus (Saturday Edition) - - FRONT PAGE -

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

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