South Africa's rand falls after dismal data, stocks rise

• The rand was 0.3pc weaker at 14.8700 per dollar, retreating after sailing to a session best of 14.7320.
• On the stock market, the Top-40 index rose 1.56pc to 52,000. The broader all-share was up 1.34pc to 57,744.
• Shares in telecoms giant MTN Group jumped 6pc to 88.10 rand after the company posted a 2019, profit jump of up to 50pc.

JOHANNESBURG: South Africa's rand fell against the dollar in late afternoon trade on Wednesday, giving up gains from earlier in the session, following a string of dismal economic data.

At 1530 GMT, the rand was 0.3pc weaker at 14.8700 per dollar, retreating after sailing to a session best of 14.7320.

Data on Wednesday showed retail sales in December fell 0.4pc year-on-year, lagging market expectations for an increase of 1.5pc.

The disappointing retail figures came after data on Tuesday showing unemployment remained at an 11-year peak in the fourth quarter and manufacturing output for December shrank 5.9pc year-on-year.

Mining output data will be released on Thursday before President Cyril Ramaphosa gives a speech opening parliament. He is expected to give details on government plans for ailing power utility Eskom.

"With government debt projections high and climbing in South Africa as a pc of GDP, particular market focus will centre on Eskom," Annabel Bishop, chief economist at Investec wrote in a note.

"Cosatu's (labour union) recent proposition to use civil servants pension funds to purchase a major stake in Eskom's debt, could alleviate some of the pressures on the sovereign debt trajectory, and so South Africa's credit ratings profile."

On the stock market, the Top-40 index rose 1.56pc to 52,000. The broader all-share was up 1.34pc to 57,744.

Shares in telecoms giant MTN Group jumped 6pc to 88.10 rand after the company posted a 2019, profit jump of up to 50pc.

Bullion miner Harmony Gold closed up 3.66pc to 43.33 rand after AngloGold Ashanti said it would sell its remaining South African assets for about $300 million to Harmony.

AngloGold shares recouped some losses earlier in the day to close down 0.75pc at 283.87 rand after headline earnings per share), the main profit measure in South Africa, for the year to December of 86 cents to 96 cents, up from 53 cents in 2018, missing market expectations.

"The minute you see a share come in a little lighter than what the market is pricing in, it gets hammered," Independent Securities trader Ryan Woods said.

In fixed income, the yield on the 2030 government issue  was up 1.5 basis points to 8.88pc.