Rand retreats, bourse closes higher

Top movers Graph of the day

FTSE/JSE Africa Index Series

THE RAND retreated against the dollar on Friday after the central bank hinted it might not raise rates further, while firms that earn profits outside the country helped lift stocks.

At 5pm on Friday, the rand was bid at R13.6759 to the dollar, 6.91c softer than at the same time on Thursday.

Government bonds also pulled back, with the yield on 10-year debt rising.

The rand has gained more than 13 percent against the dollar so far this year, buoyed like other emerging market assets by investors’ search for yield in the face of near-zero rates in developed economies.

But the S A Reserve Bank signalled on Thursday it might halt its interest rate hiking cycle, which started in early 2014 and has seen the benchmark repo rate rise 200 basis points.

The softer rand lifted the share prices of companies that have a large share of their revenues outside the country.

The benchmark JSE Top40 index was 0.29 percent firmer at 45 440.23 points, while the all share index was up 0.2 percent to 51 999.45 points.

Private hospital group which has hospitals in the United Arab Emirates and Switzerland and holds 29.9 percent in Britain’s Spire Healthcare, advanced 2.66 percent to close at R169.80.

Mediclinic,