UPDATE 1-South Africa's rand climbs 1%, PPC leads decliners on right issue

  • Reuters
  • Forex News
UPDATE 1-South Africa's rand climbs 1%, PPC leads decliners on right issue
Credit: © Reuters.

(Adds latest figures, analyst comments)

JOHANNESBURG, Sept 15 (Reuters) - South Africa's rand climbed to a six-week best on Tuesday as demand for risk assets was lifted by renewed hopes for a COVID-19 vaccine and solid industrial and retail data from China.

At 1500 GMT the rand ZAR=D3 was 1.44% firmer at 16.4375 per dollar, its best level since July 27, having closed overnight at 16.6775.

"This seems to be a purely technical washout below the 200 day MA support level," said a trader at IG Warren Venketas.

The rand has struggled for weeks to break the 200 daily moving average (DMA) around 16.5600 in volatile but range bound trade driven mostly by external events, although further signs of a ailing local economy spooked skittish investors.

"Chinese industrial output data initiated the initial risk appetite but technicals sourced further rand strength," the trader added.

China's industrial output accelerated and retail sales grew for the first time this year, beating analysts' forecasts, signalling a recovery in the world's no.1 economy. hopes have also crept back into markets.

On Tuesday South African health officials said AstraZeneca AZN.L had resumed COVID-19 vaccine trials in the country, more than a week after tests were paused due to serious side effects in a participant in Britain. were firmer, with the yield on the 2030 issue ZAR2030= down 5 basis points to 9.23%

In the equities market, stocks gave back the previous session's gains as investors focused on negative company results and earnings forecasts.

The Johannesburg All-Share index .JALSH was down 0.35% to 56,130 points and the Top 40 index .JTOPI fell 0.35% to 51,795 points.

TFG TFGJ.J closed 4.80% weaker after the fashion retailer said it expects its half-year profit to fall by 20% as sales declined due to store closures during COVID-19 lockdown restrictions. weak earnings forecast and sales numbers even as restrictions eased also pushed its rivals Woolworths (ASX: WOW ) Holdings WHLJ.J and Truworths TRUJ.J down 2.50% and 3.29%, respectively.

Leading the decliners was PPC PPCJ.J down 13.51% after the cement maker said it will do a capital raise and sell assets as part of restructuring agreements with it South African lenders.

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