RAND FLAT ON PROFIT TAKING

THE RAND was largely flat yesterday, pausing from a recent rally as investors took profits and awaited further signs of a global economic recovery.

At 5pm, the rand bid at R16.85 to the dollar. 7 cents firmer than at the same time on Wednesday.

Governments around the world have gradually started to lift tough lockdown measures imposed to contain the coronavirus which has infected more than 6.43 million people globally and killed over 380 000.

In South Africa, the government on Monday partially lifted a lockdown that has battered the economy which was already in recession before the coronavirus crisis, allowing mines and factories to run at full capacity.

Traders kept mostly on the sidelines awaiting the widely watched US unemployment figures due on Friday.

“The rand has continued to post gains over the most recent sessions, having extended these to a recent best level of (R)16.8900,” said analysts at Nedbank in a note.

“Crucially, it has thus far consolidated these gains to hold steady sub the (R)17.0000 level. There will be much focus on the U.S. NFP data tomorrow, but the technical indicators for the local unit suggest the potential for additional gains.”

In fixed income, the yield on the 10-year government bond due in 2030 was up 7.5 basis points to 8.74 percent.

Stocks also paused after hitting a more than three-month high in the last session, as investors locked in profits from recent strong gains in banks and shopping mall owners.

The JSE all share index fell 0.82 percent to 53 204.79 points, while the Top40 index closed 0.82 percent lower to 48 837.53 points.

Banks also gave their previous session’s gains back, declining 1.1 percent. I Reuters