UPDATE 1-Local and Chinese data hit South African rand and stocks

Published 2016/03/08, 18:11
Updated 2016/03/08, 18:20
© Reuters.  UPDATE 1-Local and Chinese data hit South African rand and stocks
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* Rand slips 1.2 pct on wider c/account deficit
* Weak China trade also weighs on South African assets

(Recasts with closing prices)
JOHANNESBURG, March 8 (Reuters) - South Africa's rand eased
on Tuesday after data showed a widening current account deficit,
while stocks were spooked by brittle Chinese trade figures that
sent Kumba Iron Ore KIOJ.J shares into a tailspin.
Kumba shed 18.5 percent to 9,050 rand, but did not yield all
of the massive gains it made on Monday, when its share price
soared over 30 percent on an iron ore rally.
But its share price has strayed deeply into overbought
territory according to momentum indicators and analysts said
news that China's February trade performance was far worse than
economists expected, with exports tumbling the most in over six
years, gave dealers an excuse to book profits.
"The iron ore shares have had a pretty good run so probably
there is some profit-taking. And the China data is a bit of a
reality check that says the China problem is not over," said
Bart Stemmet, an analyst at NKC African Economics.
Other stocks also fell after the weak data from China
reinforced persistent concerns about a possible slowdown in the
global economy. adding 1 basis point to yield 9.325
percent.
"The weak Chinese trade, where both imports and exports
contracted by a larger margin than expected. And then South
Africa's current account came in a lot wider than expected.
Those were the big drivers today," said Ricardo da Camara,
economist at ETM Analytics.

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