MARKETS TAKE OPPOSITE MOVES

DOMESTIC markets sharply diverged on Wednesday, with stocks tracking a global rally higher while the rand yielded ground to a resurgent dollar.

At 5pm, the rand bid at R14.8072 to the dollar, 21 cents weaker than at the same time on Tuesday. The greenback scaled its highest level in 16 months against a basket of currencies as investors bought the greenback on rising Treasury yields.

The rand was further hobbled by data that showed South Africa’s trade balance swung to a R2.95 billion deficit in September from a revised R8.77bn surplus in August.

Stocks made hefty gains, led by market heavyweight Naspers, as global markets bounced back at the end of a volatile month. Naspers bounced back from recent lows, jumping 9.4 percent to R2 592.68 as its Chinese cash spinner Tencent, the gaming and social media firm in which it has a 31 percent stake, closed 5.87 percent firmer.

The blue chip Top40 index surged 3.61 percent to 46 141.22 points, while the all share index was 3.22 percent firmer at 52 389.87 points. Reuters