RAND AND STOCKS SOFTER

THE RAND fell yesterday, as pockets of civil unrest remained following days of violence that has destroyed hundreds of businesses and left more than 100 people dead.

The rand was down 0.45 percent at R14.54 against the dollar at 5pm, retreating from a session high of R14.45 earlier in the session.

The continent’s most industrialised economy has been gripped by some of the worst violence in decades after the jailing of former president Jacob Zuma.

The government has deployed more soldiers in two provinces where security forces were struggling to quell looting, arson and violence.

The unrest threatens to derail one of this year’s star emerging market performers and highlights the chronic joblessness and poverty that has been papered over by a short-term export boom.

“The rand remains vulnerable against the current local backdrop,” Nedbank analysts said in a note.

Shares on the JSE softened as investors treaded cautiously after riots and looting in the country receded but the US market, which affects the performance of about 80 percent of local stocks, retreated from record highs.

The benchmark all share index dropped by 0.53 percent to 67 538.61 points and the Top40 companies index lost 0.51 percent to 61 439.11 points.

The losses were broad-based as almost all major sectors retreated from the previous day’s gains, with commodities and construction stocks posting the biggest fall of over 1 percent.

In fixed income, the yield on the benchmark 2030 government bond dipped 3.5 basis points to 8.955 percent, reflecting firmer prices.

Meanwhile, gold edged off a onemonth peak yesterday, weighed down by a slight uptick in the dollar, offsetting support from US Federal Reserve chairperson Jerome Powell’s dovish comments and some concerns over a stalling global economy.