RAND, STOCKS BOUNCE BACK

THE RAND gained yesterday afternoon, as the dollar eased off a more than two-week high hit earlier in the day and local media reported that the ANC had suspended one of its top officials, Ace Magashule.

At 6.56pm, the rand traded at R14.37 against the dollar, 0.6 percent stronger than its previous close.

The dollar slipped back after some softer-than-expected US economic data that prompted traders to consolidate positions ahead of a jobs report due at the end of the week.

Reports that the ANC had suspended corruption-charged Magashule supported the rand, as the move was seen as a sign of President Cyril Ramaphosa’s growing control over his divided party. Magashule denies wrongdoing.

Investor attention will soon turn to a scheduled review of South Africa’s sovereign credit by Moody’s tomorrow. The rating agency already assigns a “junk” status to the country, but with a negative outlook there is the potential for a further downgrade.

Government bonds were little changed, with the yield on the instrument due in 2030 down 1 basis point at 9.11 percent.

JSE-listed shares strengthened alongside global equities.

Among gainers, mobile operator MTN Group closed 11.53 percent stronger at R99.03 after posting a near 18 percent jump in first-quarter revenue.

The all share index climbed by 1.77 percent at 67 346.1 points, and the blue-chip Top40 index advanced by 1.92 percent to 61 536.47 points.

Meanwhile, oil prices gained for a third day yesterday as US crude inventories fell more sharply than expected, while pandemic-related restrictions in the US and parts of Europe eased, heralding an increase in fuel demand for the summer months.

Brent crude increased by 80 cents at $69.68 (about R1007) a barrel at 6.30pm. I Reuters