RAND DROPS, JSE ADVANCES

THE RAND slumped to a one-month low yesterday, as data pointed to continued weakness in the economy, while a surge in Woolworths Holdings and Old Mutual led stocks higher.

A survey showed consumer confidence in the South African economy remained at a near two-year low in the fourth quarter, as the country struggles with prolonged power cuts and choppy economic growth.

The rand tumbled more than half a percent to hit a session low of R14.50 to the dollar, its weakest since December 16. The unit trimmed its losses in late afternoon trade to steady at R14.3990 at 5pm.

The focus now turns to the SA Reserve Bank’s monetary policy meeting tomorrow, when it will announce its interest rate decision after keeping rates on hold at 6.5 percent at its last meeting.

November retail sales figures are due today and mining production data tomorrow.

In fixed income, the yield on the benchmark government bond due in 2026 was up 3.5 basis points at 8.26 percent.

The JSE all share index and the Top40 index registered near onemonth highs as department chain Woolworths and insurer Old Mutual posted strong gains.

The all share index closed 0.69 percent firmer at 57 967.13 points, while the Top40 index gained 0.74 percent to 51 725.89 points, both levels last seen on December 19.

Also helping the equity market was optimism around the Phase 1 Sino-US trade agreement expected to be signed this week.

Woolworths gained 8.3 percent to close at R52.20 after it said it appointed Levi Strauss executive Roy Bagattini as chief executive, cheering investors keen for a fresh pair of hands to tackle the department chain’s struggling Australian business.

Investors often said that the chief executive Ian Moir overpaid for upmarket Australian department chain David Jones “and when it wasn’t working he continued to invest in it”, Sasfin Wealth senior equity analyst Alec Abraham said. I Reuters