UPDATE 1-S.Africa's rand edges higher as finmin vows to avoid third downgrade

  • Reuters
  • Forex News
UPDATE 1-S.Africa's rand edges higher as finmin vows to avoid third downgrade
Credit: © Reuters.

* Gold producers get lift from Trump comments

* Stocks slip on profit-taking before Easter (updates with closing prices, comment)

JOHANNESBURG, April 13 (Reuters) - South Africa's rand firmed slightly on Thursday after new Finance Minister Malusi Gigaba pledged to work to keep the country from a third credit downgrade to junk status.

Stocks were a bit softer as investors booked some profits before the long Easter weekend which will see South African markets closed on Friday and Monday.

Gigaba, who replaced the respected Pravin Gordhan in a cabinet reshuffle that triggered credit downgrades to sub-investment by S&P Global Ratings and Fitch, told local investors he would meet ratings firm Moody's to persuade it he will stay on the path of fiscal discipline. 1600 GMT the rand ZAR=D3 had added 0.20 percent to 13.4225 per dollar compared to a close of 13.4525 overnight in New York.

Gold producers also got a lift after the precious metal's spot price XAU= hit a five-month high on comments by President Donald Trump, who said he preferred lower interest rates and that the greenback was "too strong". Gold then pulled back but stayed on track for its best week since June. GOL/

Gold Fields GFIJ.J leapt 6.6 percent to 55.51 rand while Sibanye Gold SGLJ.J added 6.4 percent.

But overall, the benchmark Top-40 .JTOPI index ended down 0.22 percent at 46,644 points, while the broader All-share index .JALSH closed 0.08 percent lower at 53,510 points.

"Volumes are very thin ... it would be a little bit of profit taking ahead of the long weekend," said NorthShore Capital fund manager Mark Loubser.

In fixed income, the yield for the benchmark government bond due in 2026 ZAR186= fell 4.5 basis points to 8.825 percent.

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