MTN: 10,501 +11 (+0.10%)
South Africa's rand weakens as risk sentiment wavers
JOHANNESBURG, March 1 (Reuters) - The South African rand
extended losses against a stronger dollar on Friday, after
breaching the 14.00 to the dollar mark in the previous session,
as doubts over the fate of a U.S.-China trade deal curbed
appetite for risk.
Stocks got a boost from relatively upbeat results from
property firm Hyprop Investment Ltd, drinks maker
Distell Group and African Rainbow Minerals.
At 1530 GMT the rand was 0.64 percent weaker at
14.1800 per dollar after weakening below the 14 to the dollar
level on Thursday. The dollar was buoyed by upbeat
fourth-quarter growth in the world's top economy.
U.S. President Donald Trump on Thursday fuelled concerns
over trade talks between the United States and China after
warning that he could walk away from a trade deal with China if
it was not good enough, although his economic advisers touted
"fantastic" progress towards an agreement.
"When looking at the holistic picture, a potential positive
outcome from the U.S./China trade talks could be the last 'good
news' for emerging markets for a while, as geopolitical tension,
declining global GDP, and populism all threaten risk appetite,"
said Bianca Botes, an analyst at Peregrine Treasury.
In fixed income, the yield on benchmark government bond due
in 2026 closed 4.5 basis points higher at 8.745
On the bourse, the Johannesburg all-share index
rose 0.63 percent to 56,203 points, while the Top-40 index
gained 0.35 percent to 49,841 points.
Growth-hungry South African drinks maker Distell closed 3.77
percent stronger to 124.52 rand after reporting a 9.1 percent
increase in half-year group revenue.
African Rainbow Minerals rose 1.93 percent after reporting
increasing its interim dividend by 60 percent and reporting a 13
percent increase in headline earnings.
Hyprop said half-year revenue rose to 1.63 billion rand from
1.54 billion rand, sending its shares up 5.86 percent to 82.03
On the decliners' side, shares in MTN Group fell
5.41 percent, a day after the mobile phone group announced
guidance for annual profit that was lower than forecast.
(Reporting by Olivia Kumwenda-Mtambo and Nqobile Dludla;
Editing by Alison Williams)
© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.