VODACOM: 13,299 +109 (+0.83%)
South African rand steadies after being hit by global selloff
* Rand recovers "flash crash" losses
* Currency likely volatile in long-term - analysts
* Stocks rebound from worst single-day fall since August
(Adds latest prices, analyst comments, stocks)
JOHANNESBURG, Jan 3 (Reuters) - The South African rand had
recovered losses by the end of the day on Thursday after a sharp
selloff in emerging market currencies on rising concerns about
Traders said the rand recovered as selling was considered to
have been excessive and investors still see value at around
14.60 to the dollar.
AT 1516 GMT the rand was 0.02 percent firmer at
14.4657 per dollar after tumbling to as far as 14.8975, its
weakest in three months.
Emerging market currencies were hit by rising risk aversion
after phone-maker Apple sparked fears about global
growth with a warning about flagging sales in China and other
The rand was already on the backfoot following weak factory
data from China on Wednesday.
A scramble to safe-haven currencies such as the Japanese yen
caused what some traders called a "flash crash" in world markets
as stop-losses and automated orders were triggered in
At one stage the rand was down about 4 percent against the
yen, which is seen as a safe asset in times of
"It did seem like a knee-jerk reaction and now you see
things have stabilised, but it shows you just how sensitive the
rand is to bad news, especially if it is about Chinese growth,"
Andre Botha, currency dealer at TreasuryOne, said.
Political uncertainty ahead of national elections in May is
set to leave the rand vulnerable in the longer term and more
susceptible to sharp, sentiment-driven outflows, analysts said.
Bonds also gained, with the yield on the benchmark 2026
paper falling 8 basis points to 8.855 percent.
Stocks were also recovering on Thursday after seeing their
largest single-day drop since August the day before. The
Johannesburg Stock Exchange's top-40 index was up 0.52 percent
at 1500 GMT and the broader all-share index was 0.63 percent
Metals and mining companies were among the biggest winners
of the day, with the South African unit of steel manufacturer
ArcelorMittal rising almost 10 percent and gold
companies, including Harmony Gold and AngloGold Ashanti
continuing to benefit from the retreat to safe haven
Telecoms giants MTN and Vodacom joined
only a handful of falling stocks on the top-40 index, down 0.7
percent and 0.14 percent at 1514 GMT respectively.
(Reporting by Mfuneko Toyana and Emma Rumney; Editing by Susan
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