MARKETS WRAP

EXPORTERS LIFT RAND, JSE GAINS

THE RAND firmed yesterday, buoyed by exporters who helped shield it from souring sentiment toward risk currencies amid fears over global coronavirus cases and concerns over South Africa’s debt.

At 5.45pm, the rand was 0.85 percent firmer at R15.14 to the dollar compared to an open of R15.26.

“The rand is still within this (R)15.05 to (R)15.38 range despite the risk aversion currently taking place. A testament to the local exporter supply,” Standard Bank chief trader Warrick Butler said in a note.

“High real rates are a boon still. However, given that SA has one of the highest debt serving costs globally, one has to wonder just how long the rand can maintain its heady heights.”

The International Monetary Fund warned South Africa on Wednesday about its spiralling debt, stressing the urgency of fiscal consolidation.

Standard & Poor’s EMEA sovereign analyst Frank Gill said the debt levels were a concern. “We don’t think South Africa will be able to stabilise their debt any time soon,” he said.

Bonds inched firmer, with the yield on the down 0.5 basis point to 8.765 percent.

Stocks rose, with the JSE’s Top40 index up 0.76 percent to 58 084.46 points and the broader all share index climbing 0.67 percent to 63 206.72 points.

Miners led the charge, with Sibanye-Stillwater, Anglo American Platinum and its parent Anglo American, which reported a rebound in production, as well as Gold Fields and a host of peers topping the blue-chip index.

The stocks closed up 6.03 percent, 5.48 percent and 3.81 percent, respectively, despite a slip in the gold price throughout the day as safe-haven appeal shifted to the dollar, although both gold and silver were rising before the local market closed.

Among the worst performers were retailers including Shoprite , which closed down 3.27 percent.

Share prices across the sector have been elevated in recent days after trading statements indicated it was bouncing back.