Latest news with #Top-40
Business Recorder
22-05-2025
- Business
- Business Recorder
South African rand steady after fraught Ramaphosa-Trump meeting
JOHANNESBURG: South Africa's rand was steady on Thursday, as markets tried to digest US President Donald Trump's Oval Office ambush of South African leader Cyril Ramaphosa, which overshadowed the country's budget presentation. At 0746 GMT, the rand traded at 17.965 against the dollar , not far from its previous close on Wednesday and near a five-month high. South African Finance Minister Enoch Godongwana tabled the 2025 budget for the third time on Wednesday, after scrapping plans to raise value-added-tax, the most contentious element in his two previous attempts. The market focus quickly shifted to Ramaphosa's meeting with Trump, however, which the South African leader had hoped would help reset strained ties between the two nations after Trump suspended aid to South Africa earlier this year, citing its land reform policy and its genocide case against Israel. However, Trump confronted Ramaphosa in the White House with false allegations of mass killings of white people and land seizure, which the South African leader pushed back against. Following a bilateral meeting with Trump, Ramaphosa told reporters that the two countries had agreed to discuss critical minerals in South Africa, but did not provide details. A trade and investment proposal was also submitted, which includes buying liquefied natural gas from the United States, his trade minister said. South African rand near five-month high before budget, Trump meeting 'One hopes that more constructive talks around trade and bilateral relations took place behind closed doors, but as yet, there have been no updates,' said Andre Cilliers, currency strategist at TreasuryONE. On the stock market, the Top-40 index was down about 0.7%. South Africa's benchmark 2030 government bond was weaker, with the yield up 2 basis points to 8.90%.
Business Recorder
16-05-2025
- Business
- Business Recorder
South African rand eases from five-month high
JOHANNESBURG: South Africa's rand eased from its strongest level in five months on Friday, a dayafter a minister said that a new inflation-targeting plan was imminent. At 1425 GMT, the rand traded at 18.095 against the dollar , about 0.4% weaker than its previous close. It hit 17.9925 per dollar in the morning session for the first time since mid-December. Markets welcomed Deputy Finance Minister David Masondo's comments at an investor conference on Thursday that anannouncement would be made 'very soon' about South Africa's inflation-targeting regime. The central bank's current inflation target is a 3-6% range and its governor Lesetja Kganyago has for years argued for a lower target. 'With little data on the economic front, markets' attention will likely remain on international geopolitics,' said AndreCilliers, currency strategist at TreasuryONE. South African rand recoups losses, power cuts in focus President Cyril Ramaphosa is scheduled to meet his U.S. counterpart Donald Trump next week in a bid to reset strained ties. Ramaphosa's spokesperson Vincent Magwenya told the broadcaster SABC late on Thursday that the visit would be short and would not involve a large delegation. On the stock market, the Top-40 index was up 0.2%. South Africa's benchmark 2030 government bond was marginally stronger, with the yield down 0.5 basis point to 8.865%.
Reuters
22-04-2025
- Business
- Reuters
South African rand firms as gold rallies
JOHANNESBURG, April 22 (Reuters) - The South African rand jumped on Tuesday as gold prices rose after U.S. President Donald Trump criticised Federal Reserve Chair Jerome Powell, rattling markets and boosting demand for the safe-haven asset. At 1400 GMT the rand traded at 18.6025 against the dollar , about 0.8% stronger than its close on Monday, after peaking about 1% higher. "The South African rand is gaining support from several factors, including surging gold prices and increased pressure on the U.S. dollar following Donald Trump's remarks about the Federal Reserve," said Zain Vawda, market analyst at MarketPulse by OANDA. The rand is often supported by surges in prices of the gold and mineral exports that South Africa's economy relies on. But it has also been undermined in recent months by political disputes between the two biggest parties in the Government of National Unity (GNU) - the African National Congress and the Democratic Alliance (DA) - over a proposed increase to value-added tax on May 1. The DA and other smaller parties have publicly rejected the proposal and filed a court case challenging the legality of the budget process. The case was heard on Tuesday. "South Africa's recent VAT hike, while impacting the GNU, has been interpreted positively by markets," Vawda said. South Africa's composite leading business cycle indicator fell 0.2% month-on-month in February, central bank data showed. On the Johannesburg Stock Exchange, the blue-chip Top-40 index was up about 0.3%. South Africa's benchmark 2030 government bond was little changed, with the yield down 0.5 basis point at 9.165%.
Zawya
15-04-2025
- Business
- Zawya
South Africa's rand gains on report ANC may scrap VAT hike
JOHANNESBURG: The South African rand firmed on Monday, boosted by a news report that the country's biggest political party may back down on a plan to raise value-added tax (VAT) and dollar weakness on global markets. At 1404 GMT, the rand traded at 18.89 against the dollar , about 1.4% firmer than Friday's closing level. The Sunday Times newspaper reported that the African National Congress was likely to drop its insistence on a VAT hike in this year's budget after indications that none of the parties it has been talking to would support it. The ANC has clashed with its main coalition partner, the Democratic Alliance over the budget's proposal to raise VAT by 0.5 percentage points on May 1 and another 0.5 points next year. The pro-business DA voted against the budget's fiscal framework in parliament and is challenging the VAT hike in court, raising investor concern it could quit or be forced from the coalition government. Andre Cilliers, currency strategist at TreasuryONE, said scrapping the VAT increase would keep the government intact and that prospect was supporting the rand. The ANC and DA met on Saturday to discuss the impasse. Neither party gave a detailed readout of their talks, but both described them as constructive. The rand was volatile last week on U.S. President Donald Trump's changing tariff policies and local political news. Trump's tariffs have escalated tensions between the U.S. and China, South Africa's biggest trading partner. Shares on the Johannesburg Stock Exchange's blue-chip Top-40 index also rose, trading about 2% higher. South Africa's benchmark 2030 government bond gained, as the yield fell 8 basis points to 9.225%. (Reporting by Tannur Anders and Bhargav Acharya; Editing by Alexander Winning Bernadette Baum and Toby Chopra)
Reuters
14-03-2025
- Business
- Reuters
South African rand jumps as gold high boosts commodity-backed currency
JOHANNESBURG, March 14 (Reuters) - South Africa's rand gained on Friday due to record high gold prices that were driven by investors seeking safe haven assets amid worries over a global trade war. At 1457 GMT, the rand traded at 18.1850 against the dollar , about 0.7% firmer than its previous close. The South African currency had fallen earlier this week on domestic political tensions sparked by a revised national budget. "The rand is ending the week on a strong note, bolstered by global market sentiment rather than domestic developments, despite uncertainty surrounding the ratification of the proposed budget," said Zain Vawda, market analyst at MarketPulse by OANDA. Gold surged on Friday as investors piled on to a historic rally in the safe haven asset to seek cover from economic uncertainty sparked by U.S. President Donald Trump's tariff war. Trump's policies have unsettled global markets after he threatened a 200% tariff on wine, cognac and other alcohol imports from Europe, escalating a global trade war that has worried financial markets and raised recession fears. The rand's strength has more to do with the record gold price and strong commodity prices than anything relating to the budget, said Roy Topol, portfolio manager at Cratos Capital. The commodity-backed rand often takes cues from global drivers like U.S. policy, but failed to capitalise on the dollar's weakness for much of this week amid domestic political and budgetary spats. Finance Minister Enoch Godongwana tabled the 2025 budget on Wednesday, in which he proposed raising value-added tax (VAT) by 0.5-percentage-point this year, followed by another 0.5-point hike next year. Major political parties publicly rejected this proposal, after rebuffing Godongwana's initial 2-percentage-point VAT hike three weeks ago. Analysts said budget uncertainty raises fiscal risk which slows interest rate cut expectations. Investors will next week focus on the South African Reserve Bank's interest rate decision. A poll by Reuters on Friday found that the central bank will likely keep interest rates steady as global trade risks and battles over the national budget keep policymakers in wait-and-see mode. On the Johannesburg Stock Exchange, the blue-chip Top-40 (.JTOPI), opens new tab index closed up 1%. South Africa's benchmark 2030 government bond was weaker, with the yield up 5.5 basis points to 9.165%.
