UPDATE 1-South African rand up as court takes case for secret vote on Zuma

  • Reuters
  • Forex News
UPDATE 1-South African rand up as court takes case for secret vote on Zuma
Credit: © Reuters.

* Rand gains after secret no-confidence ballot granted

* Stocks up led by bullion and platinum shares (Adds background, updates figures, comment)

JOHANNESBURG, April 11 (Reuters) - South Africa's rand gained ground on Tuesday, spurred by a globally hobbled dollar and a decision by South Africa's top court to consider whether a motion of no confidence against President Jacob Zuma should be taken by secret ballot.

Pressure has mounted on Zuma to resign after a controversial cabinet reshuffle triggered ratings downgrades, and the rand extended its gains to 1 percent against the dollar after the announcement. Opposition parties said the motion would be more likely to succeed if held by secret ballot late trade, the rand ZAR=D3 was 1.10 percent higher at 13.8025 per dollar.

"Any political headline is going to be driving short-term moves in the currency," said BNP Paribas (PA: BNPP ) Cadiz Securities economist Jeffrey Schultz.

Stocks gained, led by shares of gold and platinum producers, as spot bullion XAU= jumped more than 1 percent. Investors were seeking assets considered havens from risk amid mounting political and security concerns over North Korea, the Middle East and an imminent French election GOL/ .

Harmony Gold HARJ.J leapt 7.10 percent to 37.87 rand, making it the biggest gainer on the bourse. Anglo American (LON: AAL ) Platinum AMSJ.J advanced 5.52 percent to 371.85 rand and Goldfields GFIJ.J rose 3.23 percent to 52.35 rand.

The benchmark Top-40 index .JTOPI rose 0.72 percent to 46,757.54 points. The All-Share index .JALSH added 0.74 percent to 53,535.16 points.

Bonds firmed, with the yield for the benchmark government bond due in 2026 ZAR186= falling 4 basis points to 8.955 percent.

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