HARMONY: 2,184 -28 (-1.27%)
South Africa's rand, bonds slide after ANC says no deadline for Zuma exit
* Investors in wait and see mode
* Cloud of uncertainty hanging over Zuma's future
* Risk appetite return to equity markets
JOHANNESBURG, Feb 13 (Reuters) - South Africa's rand
weakened on Tuesday after the ruling African National Congress
(ANC) said it had not given President Jacob Zuma a deadline to
accept its decision to "recall" him and resign.
At 1534 GMT the rand was 0.46 percent weaker at 11.9750 per
Bonds also weakened with the yield on the benchmark 2026
government issue up 1 basis point to 8.46 percent.
"Nothing much more was elaborated at the ANC press
conference so there is still a lot of uncertainty," said
currency trader at TreasuryOne Phillip Pearce.
"At the moment there is some dollar weakness so the rand
should be benefiting, but we are pretty much stuck in limbo
between 11.80 and 12.20," Pearce said.
ANC Secretary-General Ace Magashule said on Tuesday the
party would deal with the issue should Zuma refuse to step down
as head of state as ordered by his party, but said the party had
not given him a deadline to do so.
Magashule said Zuma had promised to respond to the order by
The decision to order Zuma's removal from office followed 13
hours of tense deliberations and one short face-to-face exchange
between Zuma and Cyril Ramaphosa, the businessman who was
elected party chief in December.
The rand's fortunes have been closely tied to political
outcomes over the past couple of months, with the currency
rallying on any sign of an end to the corruption scandals and
economic decline that have tainted Zuma’s time in office.
On the equities market, stocks followed their emerging
market peers higher as rekindled risk appetite returned into the
market following a sell-off last week that saw local major
indexes hit levels last attained in October 2017.
"Investors seem to have entered the new trading week with a
renewed appetite for risk," said research analyst at FXTM Lukman
The Johannesburg All-Share index rose 1.78 percent
to 57,208 points, while the Top-40 index climbed 1.74
percent to 50,405 points.
A string of positive results and trading statements also
helped the bourse higher, with Kumba Iron Ore up 1.33
percent at 346.28 rand after it posted a 12 percent increase in
headline earnings per share and resumed annual dividend payment.
South African miner Harmony Gold closed 3.73
percent higher to 21.12 rand after saying half-year profit rose
49 percent, boosted by improved performance at its local
(Reporting by Mfuneko Toyana and Nqobile Dludla; Editing by
First Published: 2018-02-13 15:31:24
Updated 2018-02-13 17:57:19
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