S. Africa’s JSE closes higher as local currency weakens

SA stocks
SA stocks

The Johannesburg Stock Exchange (JSE) closed higher on Monday as the South Africa’s rand weakened against the U.S. dollar.

The all-share closed 0.54 percent higher at 60,038.39 and the blue-chip top 40 gained 0.55 percent to 53,131.7. Resources 20 rose 1.55 percent, general retailers 1.37 percent and food and drug retailers 0.59 percent. The gold index shed 0.05 percent, platinum 0.84 percent and property 0.48 percent.

Richemont added 2.14 percent to R114.5.

Steinhoff dropped 1.36 percent to R8.68 and Shoprite 0.89 percent to R218.23.

Naspers lost 0.54percent to R3,597.03.

Weaker-than-expected U.S. nonfarm payroll data on Friday caused the dollar to remain at about 1.20 to the euro. The local unit usually tracks movements in the euro.

The local currency was also under pressure following allegations that Zuma might soon be recalled as the country’s president. But the allegations were dismissed by ANC leaders.

Newly elected ANC leader Cyril Ramaphosa is expected to deliver a statement on January 13. The ANC’s national executive committee will also meet on Wednesday to discuss the process around the envisaged state-capture inquiry.

The South Africa’s rand was at R12.43 to the dollar from R12.33, at R14.86 to the euro from R14.83 and at R16.83 to the pound from R16.72. The euro was at 1.1973 dollars from 1.203 dollars.

Rands hedges were marginally firmer, excluding Naspers. Gold stocks were lower after the dollar gained ground against the euro to below 1.20 dollar.

President Jacob Zuma has not yet announced the appointment of an independent inquiry after the ANC resolved at its 54th conference that it should be done soon. Enditem

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