South African rand resumes rally as bulls return, stock up
* Rand resumes rally as bulls seek entry
* Market heavy weight Naspers leads stocks higher
(Adds latest figures)
JOHANNESBURG, Dec 21 (Reuters) - South Africa's rand inched
firmer on Thursday, regaining the momentum injected by Cyril
Ramaphosa's election to lead the ruling African National
At 1500 GMT the rand had firmed 0.2 percent to
12.7250, slightly down from a session best of 12.6800 in
midmorning trade, with technical indicators suggesting there was
still room for further gains as far as 12.26.
The unit looks certain to close below the 12.9945 200-day
weekly moving average, offering attractive buying levels for
investors still searching for long plays on the
The rand's rally was ignited by Deputy President Ramaphosa's
victory in the race to be leader of the ANC following a campaign
pinned on tackling corruption and pushing business friendly
The rand has gained nearly 7 percent against the dollar
since last Friday.
Moody's, the last of the top three agencies that still rates
Pretoria's local currency debt at investment grade, cited
Ramaphosa's victory as a positive for economic
Some investors however warned that the euphoria may be
overdone and that the currency will remain volatile in the
closing weeks of the year.
"Although the rand has continued to hold the gains posted
recently, it will require real impetus to extend the potential
gains beyond the recent lows in the 12.50ís in the short term,"
said Nedbank's Reezwana Sumad.
Bonds were weaker, with the yield on the benchmark paper due
in 2026 adding 8 basis points to 8.695 percent.
"The Johannesburg Stock Exchange All Share Index traded
higher this week in line with stronger emerging market equities
and improved investor sentiment following Ramaphosa's victory,"
said analysts at NKC African Economic in a note.
The benchmark Top-40 index climbed 1.59 percent at
52,082 points while the All-Share index gained 1.27
percent to 58,771 points.
Mediclinic rose 6.55 percent to 104.70 rand, market
heavy-weigh Naspers climbed 4.53 percent to 3450 rand,
while British American Tobacco gained 2.39 percent to 855.23
(Reporting by Mfuneko Toyana and Nqobile Dludla; Editing by
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