HARMONY: 2,769 -56 (-1.98%)
South Africa's rand recovers as dollar weakens; stocks up
JOHANNESBURG, Aug 24 (Reuters) - South Africa's rand firmed
on Friday as the dollar fell, regaining poise after a sharp dip
in the previous session after U.S. President Donald Trump's
tweet about land reform in Africa's most industrialised economy.
Stocks rose amid broad gains led by market heavyweight
On Thursday Trump said on Twitter he had asked Secretary of
State Mike Pompeo to study South African "land and farm
seizures" and the "killing of farmers", pushing the rand back
towards 14.5000 versus dollar following four consecutive
sessions of gains.
At 1501 GMT the rand was one percent firmer at
14.2450 per dollar, after earlier hitting a session best of
"The rand recovery has not been in isolation but rather in
line with that of its emerging market peers on the back of a
weakening U.S. dollar," IG South Africa senior market analyst
Shaun Murison said.
"Discourse between U.S. President Donald Trump and the
Federal Reserve has provided some of the short term volatility
to the dollar."
Fed Chair Jerome Powell said on Friday steady interest rate
hikes are the best way to protect the U.S. economic recovery and
keep job growth as strong as possible and inflation under
control, just days after Trump criticized the central bank's
Government bonds also firmed, with the yield on the
benchmark paper due in 2026 down 4.5 basis points to
On the bourse, the blue chip top 40 index rose 1.17
percent to 52,742 points while the all-share index
closed 1.02 percent stronger at 58,798 points.
Naspers closed 2.82 percent higher at 3,538 rand on the back
of improved sentiment after its annual general meeting on
"Koos Bekker was talking this morning and all over sudden it
started to move up. We haven't seen the minutes from the meeting
but obviously the market liked what he had to say," said Ryan
Woods, market trader at Independent Securities referring to
Further gains were seen in the bullion sector, with Gold
Fields up 3.67 percent to 35.60 rand and Harmony Gold
rose 3.33 percent to 22.65 rand, on the back of a
stronger gold price.
(Reporting by Olivia Kumwenda-Mtambo and Patricia Aruo
Editing by James Macharia)
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