20°C / 22°C
  • Fri
  • 15°C
  • 2°C
  • Sat
  • 16°C
  • 2°C
  • Sun
  • 16°C
  • 3°C
  • Mon
  • 20°C
  • 5°C
  • Tue
  • 22°C
  • 6°C
  • Wed
  • 11°C
  • 1°C
  • Fri
  • 18°C
  • 8°C
  • Sat
  • 21°C
  • 7°C
  • Sun
  • 18°C
  • 11°C
  • Mon
  • 15°C
  • 10°C
  • Tue
  • 12°C
  • 8°C
  • Wed
  • 15°C
  • 7°C
  • Fri
  • 18°C
  • 5°C
  • Sat
  • 18°C
  • 4°C
  • Sun
  • 18°C
  • 5°C
  • Mon
  • 22°C
  • 5°C
  • Tue
  • 25°C
  • 8°C
  • Wed
  • 14°C
  • 5°C
  • Fri
  • 16°C
  • 1°C
  • Sat
  • 18°C
  • 2°C
  • Sun
  • 19°C
  • 4°C
  • Mon
  • 23°C
  • 5°C
  • Tue
  • 24°C
  • 7°C
  • Wed
  • 12°C
  • 1°C
  • Fri
  • 16°C
  • 13°C
  • Sat
  • 17°C
  • 12°C
  • Sun
  • 20°C
  • 12°C
  • Mon
  • 22°C
  • 12°C
  • Tue
  • 23°C
  • 14°C
  • Wed
  • 20°C
  • 13°C
  • Fri
  • 15°C
  • 9°C
  • Sat
  • 18°C
  • 10°C
  • Sun
  • 23°C
  • 11°C
  • Mon
  • 17°C
  • 13°C
  • Tue
  • 14°C
  • 10°C
  • Wed
  • 15°C
  • 10°C
  • Fri
  • 18°C
  • 5°C
  • Sat
  • 22°C
  • 6°C
  • Sun
  • 21°C
  • 10°C
  • Mon
  • 13°C
  • 7°C
  • Tue
  • 8°C
  • 4°C
  • Wed
  • 12°C
  • 4°C
  • Fri
  • 17°C
  • 9°C
  • Sat
  • 18°C
  • 10°C
  • Sun
  • 20°C
  • 12°C
  • Mon
  • 14°C
  • 9°C
  • Tue
  • 10°C
  • 7°C
  • Wed
  • 13°C
  • 7°C
  • Fri
  • 19°C
  • 5°C
  • Sat
  • 19°C
  • 6°C
  • Sun
  • 20°C
  • 6°C
  • Mon
  • 23°C
  • 7°C
  • Tue
  • 27°C
  • 8°C
  • Wed
  • 16°C
  • 5°C
  • Fri
  • 15°C
  • 1°C
  • Sat
  • 17°C
  • 1°C
  • Sun
  • 19°C
  • 3°C
  • Mon
  • 24°C
  • 6°C
  • Tue
  • 20°C
  • 3°C
  • Wed
  • 11°C
  • 0°C
  • Fri
  • 18°C
  • 7°C
  • Sat
  • 19°C
  • 5°C
  • Sun
  • 19°C
  • 5°C
  • Mon
  • 23°C
  • 5°C
  • Tue
  • 27°C
  • 6°C
  • Wed
  • 20°C
  • 6°C
  • Fri
  • 15°C
  • 7°C
  • Sat
  • 17°C
  • 7°C
  • Sun
  • 26°C
  • 12°C
  • Mon
  • 17°C
  • 12°C
  • Tue
  • 13°C
  • 7°C
  • Wed
  • 15°C
  • 8°C

#RandReport: Rand edges lower on cabinet reshuffle fears

By 1500 GMT the rand had pared back earlier losses to trade 0.1% weaker at R13.0650 per dollar.

Picture: Supplied

JOHANNESBURG – Stocks snapped a four-session losing streak on Monday, buoyed by retailers Steinhoff and Shoprite which announced they had scrapped their plan to merge after failing to agree on a price.

Shoprite rose 8.6% to hit a 2-month high of R188 ($14.41) and Steinhoff advanced 5% to R70.11. Investors had been unnerved by the lack of detail surrounding the proposed exchange ratio.

"For Shoprite there has been a major overhang around this acquisition for a very long time and I think it will free up any uncertainties," said Paul Chakaduka at Global Trader.

The benchmark Top-40 index was up 1% at 45,506 points, while the All-share climbed 0.6% to 52,558.

Banks weighed on the bourse with the banking index shedding 0.6% as investors continued to digest the competition watchdog's recommendation that banks should be fined for rigging the rand currency.

On the currency market, the rand edged lower, weighed down by renewed fears of a Cabinet reshuffle ahead of Finance Minister Pravin Gordhan's budget speech on Wednesday.

By 1500 GMT the rand had pared back earlier losses to trade 0.1% weaker at R13.0650 per dollar, as stronger commodity prices and investors seeking higher rewards lifted demand for emerging currencies.

However, there was caution in the market ahead of speeches by US Federal Reserve policymakers due later this week, with investors awaiting further clues on the timing of US interest rate hikes.

Gordhan is expected to announce plans to lower the fiscal deficit, including new taxes to plug a revenue shortfall caused by low economic growth.

"Fiscal consolidation tends to put downward pressure on inflation, making it more likely that the Reserve Bank will consider interest rate cuts, a further positive for domestic bonds," said investment strategists at Old Mutual Dave Mohr and Izak Odendaal in a note.

Bonds were weaker, with yields on the benchmark paper due in 2026 adding 10.5 basis points to 8.785%.

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus