Jun 11, 2013
Rand hits 4-year low, SA stocks tumbleBack
Gold|Africa|Platinum|Rand Merchant Bank|Africa|Australia|China|South Africa|Mining|Top 40|Jim Bryson
At 09:29 GMT, the rand was at 10.353, having fallen as low as 10.36, its weakest level since early March 2009.
Although investors are worried about more labour unrest in South Africa's mining sector, traders said the rand was mainly following currencies such as Australia's dollar, which fell to its lowest in nearly three years amid concerns about a slowdown in China.
"The Aussie led the way and we are just joining in," Rand Merchant Bank trader Jim Bryson said.
South Africa's stock market was also hit hard, with the blue-chip Top 40 index shedding 2%. Mining companies were hit after data showed South Africa's gold and platinum output fell in April.
Bond yields continued their sharp upward trajectory, with the yield on the benchmark 2026 issue jumping 27 basis points to 8.535%, its highest since April 2012.
At an auction on Tuesday morning, the government sold a total of R2.35-billion rand its 2031, 2041 and 2048 bonds, but was forced to pay interest rates of more than 9%, suggesting the costs of government financing are set to rise sharply.
The cost of insuring South Africa's debt against default also rose to a 17-month high, according to Markit.
Edited by: ReutersComment Guidelines (150 word limit)
Other Economy News
Updated 5 minutes ago Recent accidents involving heavy vehicles on Gauteng’s roads should make the local freight industry question the value of self-regulation, Gauteng Roads and Transport MEC Dr Ismail Vadi said on Monday. Speaking at the Gauteng Freight Summit, in Boksburg, he referred...
Updated 2 hours 29 minutes ago State-owned power utility Eskom on Monday said it has successfully achieved the first oil fire for Unit 6, the first of the Medupi boilers at the developing power station in Limpopo. With the first oil fire, using liquefied petroleum gas and fuel oil, now achieved,...
Updated 2 hours 52 minutes ago After a R1.5-billion impairment charge resulted in Hulamin reporting negative earnings per share (EPS) of 422c for the 2013 financial year, the aluminium supplier said on Monday that EPS and headline earnings per share for the 2014 financial year were expected to...
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...