Our latest Investing Matters Podcast episode with QuotedData's Edward Marten has just been released. Listen here.

Less Ads, More Data, More Tools Register for FREE
Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRoc
Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRocView Video
Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investors
Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investorsView Video

Latest Share Chat

UPDATE 1-South Africa's rand pauses recent slide, stocks down

Tue, 20th Aug 2019 16:47

JOHANNESBURG, Aug 20 (Reuters) - South Africa's rand firmedon Tuesday, pulling back from an 11-month low as long dollarinvestors took profits and awaited further clues on the outlookfor the global and local economy.

Stocks closed weaker, dragged down by local retailers.

At 1520 GMT the rand was 0.89% stronger at 15.3325per dollar.

The rand has lost more than 7% since Aug. 1, battered bylocal and global issues, breaking through a succession oftechnical milestones on its way to 15.50, a pivot-point lastreached in September 2018 that has triggered stop-losses held byimporters and opened the path to a deeper retreat.

But on Tuesday the currency's slide paused. A paucity ofdata, low liquidity, and fresh hopes that a world recession willnot materialise attracted buyers.

The focus now turns to the Jackson Hole seminar where U.S.Federal Reserve chair Jerome Powell is expected to speak, and toa Group of Seven summit to be held in France this weekend forclues on what steps policymakers will take to bolster growth.

Locally, South Africa's statistics agency publishes Julyinflation figures on Wednesday, and, while limited price growththis year saw the central bank cut lending rates last month, arecent bout of currency volatility may reignite bets that thecutting cycle will be short-lived.

In equities, the broader All-Share index was down0.2%, while the benchmark Top-40 index declined 0.21%.

Leading the blue chip decliners was South African retailerShoprite, which fell more than 9.25% to 126.86 randafter missing its full-year earnings forecast.

"The whole retail market is feeling the pressure and I thinkthere's a lot of negative sentiment," said Nick Kunze, portfoliomanager at Sanlam Private Wealth.

Supermarket chain Pick n Pay shed 5.7% to 56.84rand, while food and clothing group Woolworths declined3.4% to 52.10 rand.

In fixed income, the yield on the benchmark 10-year issuedropped 4.5 basis points to 8.39%.(Reporting by Olivia Kumwenda-Mtambo and Onke NgcukaEditing by James Drummond)

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.