Rand gives up gains, JSE higher

THE RAND retreated yesterday, giving up early small gains with traders cautious going into year-end and demand for riskier assets globally fading after the European Central Bank (ECB) struck a tentative tone on economic growth.

At 5pm the rand bid at R14.1792 to the dollar, 2 cents softer than at the same time on Wednesday, after closing overnight at R14.15 and spending most of the session near the R14.10 mark.

The currency rallied in the previous session after domestic inflation rose only slightly and retail sales growth outpaced expectations, easing stagflation fears that have kept bulls at bay despite signs the central bank is on hiking cycle.

Easing trade tensions between China and the US had also spurred risk demand, but yesterday it ebbed after the ECB trimmed its growth and inflation projections for next year.

Bonds were firmer, with the yield on the benchmark 2026 paper down 2 basis points at 9.14 percent.

In equities, the all share index rose 0.28 percent to 51 744.16 points while the Top40 was 0.08 percent stronger at 45 639 points.

Loss-making construction firm Group Five closed flat at 24 cents after saying it had received interest from a number of parties for various parts of its business as it explores selling some assets. I Reuters