RAND TUMBLES, JSE FLAT

THE RAND weakened past 14 to the dollar yesterday as state-owned power utility Eskom imposed a fifth day of electricity blackouts that have discouraged investors over the economy, days before the annual budget.

At 5pm, the rand bid at R14.1799 to the dollar, 28 cents softer than at the same time on Wednesday, as it breached the 14 level for the first time in five weeks. The currency has tumbled 4 percent this week.

Investors are awaiting for more details on how the government plans to shore up Eskom’s balance sheet, details of which will be provided by Finance Minister Tito Mboweni when he presents the 2019 budget to parliament next Wednesday Bonds have also suffered, with the yield on the benchmark 10-year government issue adding 5 basis points to close at 8.945 percent.

Stocks were flat, with the JSE Top40 index down 0.08 percent to 48 349.82 points and the broader all share index down 0.03 percent to 54 527.11 points. Technology company EOH Holdings closed down 12.32 percent at R17.01, falling for the third consecutive day following the announcement that technology giant Microsoft had terminated an agreement with the company. Neither EOH nor Microsoft have yet to give a reason.