Rand dips after GDP information, shares up

The rand fell in opposition to the US greenback on Tuesday as information confirmed the home recession deepened within the first quarter of this yr – earlier than the coronavirus pandemic hit the nation and put additional pressure on the economic system.

At 1500 GMT, the rand was 0.65% weaker at R17.37 per greenback.

Statistics South Africa mentioned that first-quarter gross home product contracted 2% from the earlier three months, led by declines in mining and manufacturing.

The financial outlook stays gloomy after a strict coronavirus lockdown imposed in late March piled extra stress on companies and customers.

“Not a lot has modified since Q1, besides that 1000’s of jobs have most certainly been misplaced, quite a few companies have most certainly closed store, whereas the nation continues to wrestle with a extreme well being disaster,” mentioned Jacques Nel of analysis agency NKC African Economics.

Shares this week continued to buck the worldwide pattern with the FTSE/JSE All Share index going up 0.41% to shut at 54,362 factors on Tuesday. The highest 40 firms index closed up 0.51% at 50,175 factors.

Bonds weakened, with the yield on the benchmark authorities problem due in 2030 up 9.5 foundation factors to 9.265%.

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Staff report

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