Currency poised to strengthen

“WHERE will it end?”

Head of operations at TreasuryOne Alet Opperman said yesterday this was the question regarding the recent rand strength seen since the budget speech last week.

The domestic currency traded in a R11.50 to R11.60 range yesterday, while news of a possible cabinet reshuffle was awaited, which analysts said could spur further gains.

Bianca Botes, corporate treasury management at Peregrine Treasury Solutions, said even the stronger dollar environment could not compete with the local events that saw the rand strengthen to R11.52/ dollar over the weekend.

However, at 5pm yesterday the rand was bid 1c softer than Friday’s 5pm bid at R11.59 a dollar. Against the pound sterling it was 2c weaker at R16.19 and to the euro, it eased 2c to a 5pm bid of R14.26.

JSE stocks gained yesterday with the blue-chip top 40 index gaining 0.22% to 51 861.36 points and the all share index inching up 0.26% to 58 868.93 points.

At least 123 stocks closed higher, 129 lower and 170 were unchanged. Among the larger caps, the biggest gainer was Kumba Iron Ore, which was up 6.39% to R359.89. Bid Corp, down 2.99% to R272.66, turned out to be the biggest loser.

Among top movers, Caxton and CTP Publishers and Printers added 8.14%, while Crookes Brothers declined 9.73% to end at R51.