The Rand in tandem with South African stocks retreated yesterday, tracking declines in emerging-market peers as the US Federal Reserve’s hawkish turn hurt appetite for riskier assets. The Rand slid to R14.16 to the greenback yesterday and is currently trading at R14.07. Major miners were a big drag on the benchmark equity index as a stronger Dollar hit metals prices. The FTSE/JSE Africa All Share Index slipped 0.7% in Johannesburg yesterday, falling for a second day as trading resumed after Wednesday’s public holiday.
Locally, investors are awaiting retail sales data for April and assessing the impact of tighter restrictions aimed at countering soaring Covid-19 infection rates. Anglo American dropped 2%, to cause the largest drag on the benchmark gauge, and BHP fell 1.1% as an index of industrial-metals miners slid 1.5%, declining for a third session. A gauge of precious-metals producers dropped 2.8%, falling for an eighth day in the worst losing streak since February 2018, after gold capped the biggest drop in five months. Foreign investors have continued a recent spate of selling South African equities, disposing of a net R601 million of local stocks on Tuesday, according to the JSE, marking an eighth day of outflows. (Source: E Biz Blitz/Bloomberg)