RESOURCES PROP UP JSE

SOUTH African shares strengthened on Monday despite a global banking crisis as investors rushed into safe haven resource stocks, while the risk-sensitive rand weakened.

At 6.16pm, the rand traded at R18.52 against the dollar, 0.65% weaker than its previous close as risk-appetite waned for emerging market currencies amidst the banking crisis.

At 4pm yesterday, the rand was at R18.51 to the dollar, 0.04% weaker than it’s Monday close.

On the bourse, the resources sector closed 4.41% higher on concerns over a global banking crisis as investors snapped up gold shares, analysts said on Monday.

“We’re seeing safety in resources,” said Sasfin equity strategist David Shapiro.

Overall, shares on the JSE rose, with the blue-chip Top40 index closing 2.68% higher on 68 799.28 points, while the broader all-share index ended up 2.4% on 74 271.06 points.

South African markets opened against a tense mood across the country that saw many businesses closed as thousands of protesters marched through South Africa’s cities, calling on President Cyril Ramaphosa to resign over the lack of jobs and electricity. Security forces guarded malls and streets to prevent any violence and looting.

Yesterday was a public holiday in South Africa and markets remained closed, but when business resumes today, local investors will be looking at monthly inflation figures to be released, for clues on the health of South African economy.

A Reuters poll found on Monday that SA’s Reserve Bank would raise interest rates for the last time in this cycle by 25 basis points on March 30, in anticipation of slower inflation and a weak economy due to power disruptions.

The government’s benchmark 2030 bond was stronger with the yield down 6 basis points to 9.975%.