RAND PAUSES AHEAD OF DATA

THE RAND was flat yesterday ahead of third quarter growth data expected to show the South African economy barely expanded.

Statistics SA publishes third quarter gross domestic figures today. A Reuters poll of economists and analysts sees quarter-on-quarter expansion at 0.1 percent from 3.1 percent previously, while year-on-year growth is forecast at only 0.4 percent.

Low growth and its impact on government revenue has seen the country’s credit rating slide in recent years while public debt and unemployment have soared. However, the rand has largely weathered those concerns due mainly to the high yield on offer.

On the bourse, stocks declined. The benchmark JSE Top40 index lost 0.99 percent at 48 609 points, while the broader all share index was down 0.97 percent at 54 814.07 points.

Meanwhile, emerging market stocks edged up yesterday after declining for two consecutive sessions, as investors cheered an unexpected rebound in Chinese manufacturing activity, while Russia’s Gazprom hit a three-week high as it began gas supplies to China.

Gazprom’s shares were set for their best day in more than a week, as Russian President Vladimir Putin said supplies to China via the Power of Siberia pipeline would help the two countries reach $200 billion (R2.9 trillion) in trade by 2024.

Russian shares firmed about 0.6 percent and were slated for their best day in more than three weeks, also helped by a jump in oil prices as signs of rising manufacturing activity in China pointed towards higher future fuel demand.

China’s factory activity expanded at the quickest pace in almost three years in November, a private business survey showed yesterday, sparking a rally in global stocks.

An index of emerging market shares rose about 0.1 percent, led by gains in China and Hong Kong.

Chinese stocks ended higher, but pared early gains as concerns about a wider slowdown lingered.

The Turkish lira eased 0.2 percent after gaining for two days in a row, despite data showing the country’s economy expanding about 0.9 percent year-on-year in the third quarter, as expected. I Reuters