Full Site
Menu
Logo new

#RandReport: Rand gains as dollar stalls, stocks slip

100

JOHANNESBURG - The rand gained on Friday, taking advantage of a slip by the greenback to take back some losses from the previous session as pressure grew around the increasing likelihood of a US interest rate rise this month.

On the stock market, gold and platinum stocks dragged the bourse lower.

By 1530 GMT the rand had gained 0.46% to 13.0900 per dollar to bring the recent technical resistance mark of 13.00 back to within striking distance.

Moves this week have primarily been driven by a swing in market expectations towards a rise in Federal Reserve interest rates on March 15, an event likely to trigger flows out of emerging market assets.

South Africa publishes gross domestic product figures for the fourth quarter of 2016 on Tuesday. The economy grew 0.2% in the third quarter but it expected to expand at quicker pace in 2017 with drought conditions easing.

On the bourse, the benchmark Top-40 share index fell 0.5% to 44,636 points while the All-Share index declined 0.4% to 51,708.

Anglogold Ashanti shed 3.3% to R136.80.

Bullion fell half a percent on Friday and was on track for its biggest weekly loss in nearly four months as speculation grew that the Fed would press ahead with a rate increase this month.

Harmony Gold and Sibanye Gold also closed in the red, declining 6.5% to R30.07 and 3% to R25.16 respectively.

The palladium price was weaker, though platinum recovered somewhat from a one-month low.

Shares in Anglo American Platinum, which produces both of the metals, were down 4% at R301.20.

The firm was the biggest loser among the blue-chips.

Bonds were also firmer, with the yield on the benchmark paper due in 2026 falling 4 basis to 8.72%.

Popular Topics

Related Articles