CAPITEC: 133,723 +827 (+0.62%)
South Africa's rand rallies on EM breather ahead of Fed, stocks fall
* Rand recovers as investors see EM value
* Stocks choked by gold slide
(Adds latest figures, analyst comments)
JOHANNESBURG, Sept 26 (Reuters) - South Africa's rand
powered to its firmest since late August on Wednesday as risk
assets rallied despite expectations the Federal Reserve would
raise interest rates and draw a line under a decade of
accommodative monetary policy.
The bourse was led lower by bullion stocks as gold prices
took a hit from dollar gains against other currencies.
At 1500 GMT the rand was 0.92 percent firmer at
14.2125 per dollar, its strongest level since August 29.
The rand has shaken off the lukewarm reception to President
Cyril Ramaphosa's multi-billion-dollar stimulus plan announced
on Friday, rallying with other emerging currencies as global
risk aversion subsided.
The small size of the stimulus programme means it is
unlikely to have much of an impact, Moody's told Reuters in an
interview a day after Fitch raised similar
"Investors have begun searching for value in emerging
markets, as the degree of risk premium seems to be well embedded
in EM assets after the turmoil experienced so far this year in
the EM complex," said Nedbank analysts Mehul Daya and Walter de
Wet in a note.
A climb to two-month highs for Chinese shares and talk of an
IMF deal for Argentina also helped steady sentiment towards
In fixed income, the yield on the benchmark government bond
due in 2026 fell 5 basis points to 9.065 percent.
In equities, the broad all-share index was down
0.55 percent at 56,570.15 points while the top 40 index
was 0.59 percent softer at 50,361.86 points.
The gold index fell 3.25 percent with AngloGold
Ashanti falling the most on the blue chip index, down
2.95 percent to 124.35 rand.
Gold prices slipped as the greenback strengthened ahead of
the results of the Fed meeting.
Shares in Capitec Bank closed 1.87 percent firmer
after the lender reported a 20 percent rise in half-year profit,
helped by strong client growth.
"A very decent set of results. The only concern was that
they have not really grown in the lending side of things but the
transaction side of business is doing exceptionally well," said
Ryan Woods, an equities trader at Independent Securities.
(Reporting by Mfuneko Toyana and Patricia Aruo
Editing by Ed Stoddard)
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