#RandReport: SA's stocks, rand join China-led rally
The rand traded at 15.7700 versus the dollar, 0.66 percent firmer from Friday's New York at 15.8750.
JOHANNESBURG South African stocks and the rand gained on Monday as emerging market assets were boosted by comments from the Chinese central bank which suggested it was not going to further devalue the yuan, easing fears about global deflation.
Anglo American was the biggest winner among the blue-chips, reaching a near three-month high thanks in part to its recent restructuring efforts, according to Cratos Capital portfolio manager Ron Klipin. Anglo gained 8.27 percent to closed on 89.29 rand.
The benchmark JSE Top-40 index rose 2.92 percent to 44,379 points and the broader All-share index was up 2.6 percent at 49,851, its highest close in 2016. All but two blue-chip stocks closed in the black.
There was probably a short squeeze and the market was a bit oversold, said Klipin.
Trade was below par with more 242 million shares changing hands, below last year's daily average of 296 million shares.
On the forex market, the rand strengthened against the U.S. dollar as the biggest one-day gain for China's yuan in more than a decade helped settle financial nerves.
At 1600 GMT, the rand traded at 15.7700 versus the dollar, 0.66 percent firmer from Friday's New York at 15.8750.
The stars have aligned for a stronger start to the week for the rand with the dollar speculative positions being reduced and Asian stocks on the front foot, said Bidvest Bank's chief dealer, Ion de Vleeschauwer.
Government bonds tracked the rand firmer, and the yield for the benchmark instrument due in 2026 was down 7 basis points at 9.175 percent.