RAND SLIPS AS DOLLAR GAINS

THE RAND extended losses against a stronger dollar on Friday, after breaching the R14 to the dollar mark in the previous session, as doubts over the fate of a US-China trade deal curbed appetite for risk.

The rand closed at R14.2295 to the dollar, after weakening below the R14 to the greenback level on Thursday. The dollar was buoyed by upbeat fourth-quarter growth in the world’s top economy.

US President Donald Trump on Thursday fuelled concerns over trade talks between the US and China after warning that he could walk away from a trade deal with China if it was not good enough, although his economic advisers touted “fantastic” progress towards an agreement.

“When looking at the holistic picture, a potential positive outcome from the US/China trade talks could be the last ‘good news’ for emerging markets for a while, as geopolitical tension, declining global GDP, and populism all threaten risk appetite,” said Bianca Botes, an analyst at Peregrine Treasury.

In fixed income, the yield on benchmark government bond due in 2026 closed 4.5 basis points higher at 8.745 percent.

Stocks got a boost from relatively upbeat results from property firm Hyprop Investment, drinks maker Distell Group and African Rainbow Minerals.

The all-share index rose 0.63 percent to 56 203.11 points, while the Top40 index gained 0.35 percent to 49 841.27 points. I Reuters