MARKET WRAP: Friday, December 9
Disappointing current-account numbers weighed on the rand, but bonds were little changed and the JSE and futures advanced
South African markets were mixed on Friday with the release of disappointing current-account numbers for the third quarter. The current account deficit widened to 4.1% of GDP in the third quarter from a revised 2.9% in the second quarter, resulting in the trade account moving into a deficit from a surplus, due mainly to lower exports. This data had a negative effect on the rand, while the JSE and futures gained; bonds were little changed. Nedbank economists said the current account deficit was likely to narrow in coming quarters as export performance would be boosted by a likely improvement in global demand. The outlook for the domestic economy however, remained weak, but a gradual recovery was likely. The JSE all share closed 0.71% higher at 50,899.90 points, and the blue-chip top 40 added 0.75%. The South African listed property index jumped 2.36%, financials gained 1.41% and banks were up 1.36%. Industrials rose 1.14% and food and drug retailers gained 1.12%. The gold index shed ...
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