Strong rand puts damper on JSE

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(Gianluigi Guercia, AFP)
(Gianluigi Guercia, AFP)

Johannesburg - A strong inflow of foreign capital into the South African bond market which pushed the rand to the strongest level since March this year, put a damper on share prices on the JSE on Monday morning.

The news on Friday evening that Standard & Poor's decided to keep South Africa’s credit rating intact supported financial shares on Monday and gave the bond market a huge fillip.

Analysts said there is a huge demand for emerging market bonds among investors using carry trade to finance these investments. Although South African bonds’ foreign credit rating is below investment grade due to political uncertainty, investors feel the local political situation does not differ much from that of many other developing markets.

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USD/ZAR
14.05
0.0%
GBP/ZAR
19.67
0.0%
EUR/ZAR
17.10
0.0%
AUD/ZAR
11.03
0.0%
JPY/ZAR
0.13
0.0%
Gold
1,831.32
0.0%
Silver
27.45
0.0%
Palladium
2,929.64
0.0%
Platinum
1,256.50
0.0%
Brent Crude
68.28
+0.3%
Top 40
62,573
+1.4%
All Share
68,520
+1.4%
Resource 10
71,474
+2.1%
Industrial 25
86,856
+0.9%
Financial 15
12,711
+1.1%
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