In the light of the thin holiday season trade, South Africa’s rand firmed on Monday, extending modest gains notched up since calm returned to markets after the fallout over the hiring and firing of finance ministers.
Stocks also benefited from the calmer mood, with the market ending nearly one percent higher. It was also boosted by the gold index, which jumped more than 5 percent as the global price of the metal continued to rise.
The rand gained 0.4 percent to 15.0300 per dollar, within striking range of the sub 15.00 mark.
Chief Economist at Investec said “Should there be no more market-moving shocks from government the rand should be down over year-end, and limited movement should occur from current levels”.
On the bourse, the Top 40 Index rose 0.89 percent to 44,368 points, while the All Share Index was up 0.97 percent at 49,190 points.
Gold stocks led the rally, with Sibanye Gold up 7.46 percent to 24.33 rand and Harmony Gold adding 6 percent to 14.69 rand. Gold Fields traded 5.38 percent firmer at 42.15 rand.
Inkunzi Investments Founder and trader Owen Nkomo said “(Good) sentiment seems to have returned to the market, although volume is low due to people being on holiday”.
The property sector also showed some recovery with Growthpoint gaining 3.18 percent to 23.01 rand and Redefine added 1.5 percent to 9.50 rand.
South Africa Rand Consolidates Gains, Gold Index Boost Stocks22/12/2015