MARKETS WRAP

THE RAND firmed yesterday, reversing early losses alongside other emerging market currencies as an improving US economic outlook lifted demand for the dollar.

At 5pm, the rand was 0.15 percent firmer at R14.97 against the dollar.

“The domestic currency will remain erratic, swinging rapidly both stronger and weaker, as global market events continue to impact its direction,” said chief economist at Investec, Annabel Bishop, adding the volatility was likely to persist in the second quarter.

High-yielding currencies in the developing world have come under pressure this month from rising US bond yields, which have surged on expectations of higher inflation and have pushed up demand for the dollar.

On the domestic front, investors remain wary of slow progress in the rollout of Covid-19 vaccine heading into the second quarter of the year, as a resurgence in infections would impact the anticipated economic recovery.

Stocks surged yesterday extending a massive gain seen on Friday as hopes of a faster local economic recovery added on to positive global cues.

The benchmark all share index was up 0.38 percent to 67 089.37 points and the blue-chip index Top40 ended the day 0.33 percent up at 61 443.9 points.

Index heavyweight and Africa’s biggest company in terms of market capitalisation Naspers rose 0.55 percent to R3 546.49, boosted by positive Chinese industrial output data.

Naspers, through its subsidiary Prosus, holds more than 30 percent stake in Chinese tech giant Tencent Holdings.

Bonds firmed, with the yield on the benchmark 2030 paper down 3.5 basis points to 9.45 percent.

Meanwhile, a gauge of global equities fell yesterday after Nomura and Credit Suisse warned of billions of dollars in losses from an unnamed US hedge fund’s default, while crude prices slid as container traffic in the Suez Canal resumed.

I