Rand stronger ahead of rates decision
FTSE/JSE Africa Index Series
THE RAND started the week on a positive note firming to R13.16 against the dollar during intraday trade yesterday, ahead of the South African Reserve Bank’s interest rate decision this week.
Dynamic Outcomes’ James Paynter said monetary policy committee was between a rock and a hard place, with Treasury Bill rates suggesting a small rate increase with an economy that hardly needs more stress.
“We are not playing the normal economist ‘outcome drives direction’ game… Instead we will be looking at the market patterns themselves to get direction… and that suggests some more downside although we could see some retracement first.”
At 5pm the rand was bid 4 cents stronger than Friday’s same time bid at R13.23 to the greenback. Against the pound, the local unit was largely unchanged at R17.52 and to the euro, the currency eased 1c to R15.50.
Corporate treasury manager at Peregrine Treasury Solutions, Bianca Botes, said the Reserve Bank was expected to keep interest rates on hold, given the current consumer price index (CPI) level and potential upward pressure brought on by rising fuel prices, tariff hikes and a weaker currency.
“The CPI is due for release on Wednesday which is likely to set the tone for this week’s MPC meeting. I’m not convinced that the rand has enough momentum to remain below R13.30, but for now it is enjoying the reprieve as the dollar remains subdued,” she said.
JSE stocks took a beating yesterday with the blue chip Top40 index sinking 1.8 percent to 49 338.95 points, while the broader all share index declined 1.64 percent to 55 442.04 points.
Leading losses among major moves were which tanked 8.76 percent to R18.01, followed by which gave up 5.45 percent to R2.95.
Bidvest
4.25 percent
Sibanye JSE, Impala Steinhoff, Group
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Platinum,
declined R182.75, while fell 3.71 percent to R293 and gave up 3.59 percent to end the day R73.11. Among tpo gainers were up 4.5 percent to R13.01, followed by gained 3.5 percent to R368.09. added 2.17 percent to R7.53, while inched up 1.34 percent to R315.24 and the which scored 1.23 percent growth to end the day at R161.75.
Kumba Iron Ore Truworths Italtile, Anglo American Platinum Astral Foods