JOHANNESBURG: South Africa's rand steadied on Thursday as improved global risk appetite cushioned the currency from extending recent losses, while stocks were pulled down by a global commodity sell-off.
At 1513 GMT, the rand traded at 13.8925 per dollar, not far off its New York close of 13.8900/dollar on Wednesday, when Finance Minister Pravin Gordhan detailed downbeat growth forecast for the next three years.
"Global risk sentiment has also improved relative to yesterday, which might be providing some added support to the rand," ETM Analytics market analyst Jana van Deventer said. Weak economic growth, political instability and potential credit rating downgrades all pose a risk to the rand in the coming weeks. On the bourse, the benchmark Top-40 index fell 0.93 percent to 44,591, about 90 points above its intra-day low.
The wider All-share index eased 0.8 percent to 51,139.66. Brent crude oil dipped below $50 on doubts that the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers like Russia will be able to effectively coordinate output cuts to prop up prices.
Decliners in Johannesburg included Sibanye Gold, which fell over 7 percent to 38.79 rand, off its intra-day low of 38.54 rand, despite flagging to the market expectations of a tripling of full-year earnings.
Gold Fields shed 3.75 percent and Johannesburg shares of South32 lost over 5 percent. In fixed income, the yield for the benchmark instrument due in 2026 added 4.5 basis points to 8.925 percent.
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