MARKETS WRAP RAND, JSE LOSE MOMENTUM

THE RAND weakened late yesterday, reversing some gains made earlier in the session, as data pointed to a slower recovery in factory activity.

At 5.08pm the rand was 0.47 percent weaker against the dollar at R15.01.

A survey showed that South African private sector activity expanded in February, but at a slightly slower pace than the previous month.

The rand rallied to a year’s best of R14.39 a week ago on fiscal consolidation plans laid out by South Africa’s finance minister, but has struggled to strengthen further, with doubts remaining over how quickly the country can achieve sustainable fiscal improvement.

Investors also weighed the prospect of further loosening of monetary policy globally against signs of returning inflation.

“The market is still trying to make sense of the tidal wave of stimulus that has hit financial markets over the past year, and the longer-term impact thereof on inflation and prospective monetary policy,” said economists at ETM Analytics.

Stocks failed to hold on to another record high hit earlier in the session, snapping a two-day winning streak as weak bullion, aluminium and platinum prices took the shine out of miners and explorers exposed to those commodities.

Weak earnings results and outlook also dampened sentiment.

Mining heavyweights BHP Group fell 4.09 percent to R472.91 and Anglo American lost 0.92 percent to R609.25, while Impala Platinum closed 1.52 percent weaker at R266.40.

The JSE benchmark all share index retreated 0.27 percent at 68 326.79 points, reversing earlier gains as it retreated from a record high of 69 403 points. The blue-chip Top 40 index fell 0.39 percent to 62 861.62 points, also from a record high of 63 969 points.

Bonds weakened, with the yield on the 2030 government bond adding 2 basis points to 9.045 percent.