RAND SLIPS, STOCKS FLAT

THE RAND weakened yesterday, as the dollar crept higher ahead of US Federal Reserve chairperson Jerome Powell’s testimony before Congress.

Investors will scrutinise Powell’s remarks for clues about the outlook for US monetary policy, after a surprise hawkish shift from the Fed last week sent the dollar soaring and emerging market assets tumbling.

At 5.50pm, the rand traded at R14.35 against the dollar, 1 percent weaker than its previous close. It had appreciated more than 1 percent on Monday after steep losses of more than 4 percent last week.

Powell was due to appear before Congress last night. In prepared remarks he noted sustained labour market improvement and the recent increase in inflation.

Stocks ended largely flat with the broader JSE all share index down a marginal 0.02 percent while the Top40 index inched up 0.04 percent.

“Given how markets remain highly sensitive to comments from Fed officials and inflation expectations, the next few days promise to be quite eventful for markets with numerous Fed speakers on the roster,” Lukman Otunuga, senior research analyst at FXTM said.

Chemicals and fertiliser maker Omnia Holdings was among the gainers, closing 1.05 percent firmer at R54.85 after it reinstated its dividend and posted a surge in annual earnings on Tuesday.

Mining stocks weakened 0.3 percent as gold retreated on a firmer dollar.

In fixed income, the yield on the benchmark 2030 instrument was flat at 9.065 percent.

Meanwhile, gold retreated yesterday on a firmer dollar as traders eyed testimony by Powell.

Spot gold price fell 0.3 percent to $1 777.23 (about R25 379) an ounce by 4.34pm, while US gold futures dropped 0.2 percent to $1 778.60.