JSE is subdued on weaker a rand as gold stocks jump
The market is digesting headwinds, including the local current account deficit, continuing strikes and the effects of US trade measures
The JSE all share showed little reaction to the sharply weaker rand at the opening on Wednesday, following the Workers’ Day public holiday on Tuesday, with gold stocks early leaders.The gold price was 0.48% higher at $1,310.12 an ounce as the dollar hit $1.20 to the euro.Investors took a wait-and-see attitude on expectations the rand might firm again from present levels, regarded as oversold. A weaker currency usually supports rand hedges and miners.The rand plummeted to its weakest level in four months against the dollar, as a number of global headwinds hit the local currency in a firmer dollar environment.These include the local trade deficit, continuing strikes and unrest, the effects of US trade measures and the expectation of a continuation of the hawkish outlook from the US Federal Reserve, analysts at Nedbank Corporate and Investment Banking said.The rand weakened to R12.6597 to the dollar in overnight trade and was at R12.5812 at the JSE’s opening.Although SA’s trade balance...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.