Update 1-South African rand slips after strong gains last week

  • Reuters
  • Forex News
Update 1-South African rand slips after strong gains last week
Credit: © Reuters.

(Updates throughout)

JOHANNESBURG, June 24 (Reuters) - South Africa's rand slipped slightly on Monday after strong gains last week, as investors waited for direction from this week's Group of 20 summit.

Local stocks and government bonds also weakened.

At 1820 GMT the rand ZAR=D3 was around 0.4% weaker than its previous close at 14.3725 per U.S. dollar after gaining more than 3% last week.

U.S.-China trade tensions have market participants eyeing the leaders of the world's two largest economies and their expected meeting at the upcoming G20 summit in Japan on Friday. the absence of market-moving data releases, the rand tends to take its cue from global market developments.

China is South Africa's largest trading partner, so any impact on its economy from the trade tensions affects sentiment towards local assets.

The Johannesburg Stock Exchange's benchmark Top-40 Index .JTOPI dipped 0.27% to 52,761 points, while the broader All-Share Index .JALSH closed 0.31% lower at 58,756 points.

Among the biggest fallers on the blue-chip index, Sappi SAPJ.J fell 4.55% to 55.56 rand and Aspen Pharmacare APNJ.J fell 3.32% to 101.00 rand.

Curbing further losses were bullion stocks, which gained on the back of a higher spot gold price, with AngloGold Ashanti ANGJ.J up 3.54% to 250.55 rand and Gold Fields GFIJ.J 2.30% higher at 78.86 rand. yield on the benchmark government bond due in 2026 ZAR186= rose 5 basis points to 8.17%, reflecting weaker prices.

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