HARMONY: 4,591 +102 (+2.27%)
Rand regains some ground as dollar rally fades
(Updates rand, adds stocks)
JOHANNESBURG, Feb 8 (Reuters) - South Africa's rand
recovered on Friday, tracking peers like the Turkish lira and
Russian rouble as the dollar weakened and investors looked to
profit on the greenback's recent rally.
At 1516 GMT the rand was 0.28 percent firmer at
13.5875 per dollar compared to a session low of 13.70.
The currency made some small initial gains overnight
following President Cyril Ramaphosa's state of the nation speech
on Thursday, before falling back again as offshore factors
continued to overshadow local issues.
The dollar's surge this week swept aside the risk appetite
that had seen the rand rally for most of January all the way to
13.20, and it is now poised for a slide close to 14.00 per
dollar as worries over global growth trump an easing in local
"It's been a docile day for EM's in general with only the
lira outperforming. The dollar has backed off a bit from its
highs so I'd put the rand's move down to that," said currency
trader at TreasuryOne, Andre Botha.
"If it closes above the 13.70 in the session that opens up
the scope for a run to 13.90," said Botha.
Meanwhile bonds were flat, with the yield on the benchmark
10-year paper down 0.5 basis points to 8.65 percent.
The Johannesburg Stock Exchange slipped, with its top-40
index down 1.41 percent to 47,001 points and the
broader all-share index down 1.2 percent to 53,244
Miners were the biggest winners, with Sibanye-Stillwater
rising 8 percent to lead the index upwards, despite
news that the company's latest effort to end a damaging strike
at its gold operations had been unsuccessful.
It was followed by Lonmin, also up 8 percent,
African Rainbow Minerals, Impala Platinum and
Kumba Iron Ore, all up between 3 percent and 5 percent,
with Harmony Gold also up 2.7 percent.
Lonmin on Friday maintained its revenue, cost and capital
spending guidance for the full year, although it also reported
Meanwhile, Harmony Gold said it expected earnings per share
to be substantially lower for the first half of 2019 but higher
production had made a substantial contribution to its free cash
Impala Platinum also said it expects higher sales for the
first half of the year.
(Reporting by Mfuneko Toyana and Emma Rumney, Editing by Sherry
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