RAND IN SHARP WEEKLY LOSS

THE RAND lost more than 3 percent against the dollar last week, as five consecutive days of power cuts reminded investors about the fragility of an economic recovery.

At 5.20pm, the rand traded at R14.1250 versus the dollar, barely changed from its previous close of R14.1275 and more than 3.5 percent weaker than at the end of last week.

However, the rand later gained to close at R14.0811 on Friday.

Struggling Eskom implemented one of the worst power cuts in several years from Sunday to Thursday, hurting small businesses without backup power generators and industrial firms that consume large volumes of power.

Investors are waiting for more details on how President Cyril Ramaphosa’s government plans to shore up Eskom’s balance sheet – plans which should be unveiled during a budget speech by the finance minister on Wednesday.

Government bonds firmed on Friday, with the yield on the benchmark 2026 bond falling 6.5 basis points to close at 8.88 percent.

On the bourse, stocks ended the week higher, with the all share index up 0.19 percent at 54 628.41 points, while the blue chip Top40 index up 0.2 percent at 48 446.14 points.

Food producer Pioneer Foods rose 1.47 percent to R81.25. I Reuters