#RandReport: South African rand weakens in range-bound trade, stocks fall
Stocks dipped led lower by construction company Basil Read , which swung to a half-year loss.
JOHANNESBURG - South Africa’s rand weakened on Monday and was largely range-bound in the absence of market-moving data expected later in the week and subdued trade as United Kingdom (UK) banks were closed for a holiday.
Stocks dipped led lower by construction company Basil Read, which swung to a half-year loss.
At 15:18 GMT, the rand traded at 13.0375 versus the dollar, 0.29% lower than its New York close on Friday, trading within a 13.04 to 13.08 range.
“The fact that they are off today means very much a range trading market for us,” said currency trader at Rand Merchant Bank Jim Bryson, referring to the UK banking holiday.
The rand will look for direction from economic data later in the week in the form of July money supply and private sector credit data on Wednesday, as well as producer price inflation figures and trade numbers due on Thursday.
In fixed income, government bonds weakened slightly with the yield for the benchmark instrument due in 2026 up 1 basis points to 8.580%.
On the stock market, the Top-40 index fell 0.23% to 50,058 points while the broader all-share dipped 0.18% to 56,556 points.
Basil Read fell more than 7% before recovering some of its losses to trade 2.5% weaker at 78 rand after it swung into a six-month operating and headline loss after its roads and construction divisions performed poorly.
"It just speaks to the whole construction industry is in a dull-drum in South Africa at the moment," Cratos Capital equities trader Greg Davies said.