Spike in global bond yields saps investor confidence
THE rand recorded mild gains against the dollar yesterday, with all eyes next focused on developments around the Wednesday court appearance of Finance Minister Pravin Gordhan, who faces fraud charges.
Stocks sagged in line with shares elsewhere as a spike in global bond yields sapped investor confidence and signalled growing expectations that US interest rates will rise before the end of the year
The rand was 0.30 percent firmer at R13.8325 to the dollar after trading steady for most of the day. Bonds mirrored the rand, with the yield on the benchmark government bond due in 2026 falling 5 basis points.
Analysts said investors were pausing after South Africa’s medium-term budget policy statement on Wednesday and ahead of a week of potential high political drama.
Gordhan is accused of fraudulently approving, when head of the revenue service, early retirement for a deputy commissioner.
Stocks followed global counterparts lower with the benchmark Top 40 index shedding 0.63 percent to 44,308.17. The broader Allshare index fell 0.67 percent to 50,797.70.
Volumes were thin with around 185 million shares changing hands, well below last year’s daily average of 296 million. – Reuters