JOHANNESBURG: South Africa's rand and bonds firmed on Monday after the finance minister said the economy may be over the worst of its downturn and took a further boost from upbeat Chinese manufacturing data.
Stocks were weaker as gold mining firms weighed on the bourse. By 1607 GMT the rand had firmed 0.56 percent to 13.6425 per dollar, paring earlier gains that had taken it to 13.5500.
"The rand edged stronger against the greenback during Monday's European session as positive Chinese manufacturing sector data for September improved overall risk sentiment," NKC African Economics economist Gerrit van Rooyen told Reuters.
Government bonds were also in demand, with the yield on the benchmark 2026 issue down 11 basis points to 8.57 percent. Bonds climbed in line with the stronger rand, Van Rooyen said.
Feeble growth in Africa's most advanced economy was reflected by September's weak vehicle sales print on Monday, extending the year-on-year decline to 14 percent, from 9 percent in August.
But Gordhan told an investment summit in London that the worst could be over and that he expects economic growth of more than 1 percent in 2017.
"We are going through a difficult economic patch at the moment but we may well have bottomed out," he said.
On the bourse, mining firms Sibanye Gold and AngloGold Ashanti led the decline.
Shares in Sibanye fell 3.3 percent to 47.83 rand and AngloGold Ashanti was 2.8 percent weaker at 215.49 rand after bullion lost ground and data showed imports by India, a major consumer of the metal, continued its downward trend.
The benchmark Top-40 index was 0.7 percent weaker at 45,107 points while the All-Share index fell 0.77 percent to 51,659 points.
Trade was muted with around 179 million shares changing hands, compared with last year's daily average of 290 million, according to preliminary bourse data.
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