STOCKS AND MARKETS

THE RAND rallied more than 1 percent yesterday, recouping most of the previous session as hopes of a coronavirus vaccine and signs of economic recovery around the world kept investors interested in risk assets.

Stocks also rose, tracking global equity indices.

At 5.30pm the rand was 1.52 percent firmer at R15.24 to the dollar, having dipped to a three-session low of R15.4750 overnight in erratic trading.

The rand’s gains matched advances by fellow high-yield, emerging market currencies, with the Brazilian real and the Mexican peso both posting 1 percent gains.

“Yesterday (Monday) it appeared to be a global case of profit taking and month-end fixes with commodities struggling, equities lower and the Dollar stronger,” Standard Bank’s Warrick Butler said in a note to clients.

Along with optimism about a vaccine, expectations of more monetary stimulus from the US and signs of a solid rebound in China have driven risk buying, although South Africa’s specific growth challenges have tempered inflows.

Yesterday, the government asked for a court hearing over a wage dispute with public sector trade unions to be postponed to 2021.

Unions took the government to court after officials said the state could not afford to pay salary increases that were due to come into force in April 2020.

Economists view the dispute as critical as the wage cuts are a centrepiece of government’s plan to stabilise soaring debt levels.

The Absa Purchasing Managers’ Index also showed a slower local economic recovery, with new sales dropping in November.

The JSE all share index firmed 0.73 percent to 57 509.72 points, while the Top40 index rose 0.74 percent to 52 764.09 points. I Reuters