South African assets weaker in early trade

South Africa’s rand retreated early on Monday, in line with falls in local bonds and stocks.Photo: Simphiwe Mbokazi/African News Agency (ANA)

South Africa’s rand retreated early on Monday, in line with falls in local bonds and stocks.Photo: Simphiwe Mbokazi/African News Agency (ANA)

Published Oct 1, 2018

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JOHANNESBURG - South Africa’s rand retreated early on Monday, in line with falls in local bonds and stocks, as investor appetite for riskier assets was muted.

The rand was 0.27 percent weaker at 14.1950 per dollar at 07:02 GMT, having closed in New York at 14.1500.

The currency is expected to trade between 14.0500 and 14.3500 to the dollar on Monday, NKC African Economics wrote in a note.

The rand had been supported on Friday by upbeat trade data showing a surplus of R8.79 billion in August.

South Africa-focused investors were awaiting the release of the Absa/BER manufacturing Purchasing Managers’ Index (PMI) for September, as well as new vehicle sales, on Monday.

In fixed income, the yield on the benchmark government bond due in 2026 rose 2 basis points to 9.020 percent, reflecting weaker bond prices.

Stocks were also weaker, with the top-40 index down 0.4 percent in early trade. 

-REUTERS 

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