RAND SOFTER, JSE SCORE GAINS

THE RAND weakened against the dollar in afternoon trade yesterday, with market sentiment bruised by indicators painting a bleak outlook for the economy both at home and globally amid the coronavirus crisis.

At 5pm, the rand was 1.22 percent weaker at R18.76 to the dollar, giving up gains from earlier in the session.

Investors globally dumped riskier assets in the wake of dire economic numbers after shutdowns to stem the spread of the virus.

In South Africa, private sector activity fell to a record low in April, a business survey showed yesterday, as temporary company closures led to a collapse in demand.

Manufacturing data in the euro zone and the UK also painted a bleak picture and sent investors piling into safe-haven currencies such as yen and dollar.

Greg Davies, trader at Cratos Capital, said the all share index was pulled upwards by stocks that tend to benefit from a weaker rand, like miners that export their product, or firms with an overseas presence and therefore a rand hedge in place.

On the JSE, British American Tobacco rose 1.9 percent to R695.73,

BHP Group gained 4 percent to R311.77, Mondi was up 2.5 percent to R313.44, while mining firms rose 2.84 percent.

But miner Harmony Gold closed 9.03 percent lower at R64.50 after it said it planned to raise up to $200 million (about R3.6bn) via a share issue to fund part of its purchase of AngloGold Ashanti’s last remaining assets in South Africa.

The JSE Top40 index rose 1.64 percent to 45 952.52 points while the all share closed 1.32 percent firmer at 49 831.99 points.

In fixed income, the yield on government paper due in 2030 rose 2.5 basis points. I Reuters