South African rand slips after strong gains last week
JOHANNESBURG, June 24 (Reuters) - South Africa's rand
slipped slightly on Monday after strong gains last week, as
investors waited for direction from this week's Group of 20
Local stocks and government bonds also weakened.
At 1820 GMT the rand was around 0.4% weaker than
its previous close at 14.3725 per U.S. dollar after gaining more
than 3% last week.
U.S.-China trade tensions have market participants eyeing
the leaders of the world's two largest economies and their
expected meeting at the upcoming G20 summit in Japan on Friday.
In the absence of market-moving data releases, the rand
tends to take its cue from global market developments.
China is South Africa's largest trading partner, so any
impact on its economy from the trade tensions affects sentiment
towards local assets.
The Johannesburg Stock Exchange's benchmark Top-40 Index
dipped 0.27% to 52,761 points, while the broader
All-Share Index closed 0.31% lower at 58,756 points.
Among the biggest fallers on the blue-chip index, Sappi
fell 4.55% to 55.56 rand and Aspen Pharmacare
fell 3.32% to 101.00 rand.
Curbing further losses were bullion stocks, which gained on
the back of a higher spot gold price, with AngloGold Ashanti
up 3.54% to 250.55 rand and Gold Fields 2.30%
higher at 78.86 rand.
The yield on the benchmark government bond due in 2026
rose 5 basis points to 8.17%, reflecting weaker
(Reporting by Tanisha Heiberg and Alexander Winning;
Editing by Alison Williams)
First Published: 2019-06-24 08:50:13
Updated 2019-06-24 20:59:11
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