Staff of Reuters 3 Minutes to Read (Updates prices) Reuters, JOHANNESBURG, July 7 – In afternoon trade on Wednesday, the rand held steady versus the dollar, with market focus on the release of minutes from the US Federal Reserve later in the day. The rand was trading at 14.3750 against the dollar at 1500 GMT, close to its previous close of 14.3775. Investors will be watching the Fed minutes, which are expected at 1800 GMT, for more hints about when interest rates in the United States might rise. Any indication that they would rise soon hurts emerging market currencies such as the rand. South Africa’s net foreign reserves fell to $51.368 billion in June, according to central bank figures released on Wednesday, although the local currency remained unaffected. In other news, research firm NKC African Economics upgraded its projection for South Africa’s economic growth in 2021 to 4.3 percent, citing increasing activity and mobility in recent months. “South Africa’s industrial sector will benefit from increased global demand and a recovery in commodity prices. Excess savings among middle- and high-income groups have aided consumer spending in recent months and will continue to do so in the future months “In a note, NKC stated. It warned, however, that the economic recovery from the COVID-19 pandemic would take time, especially after the economy shrank by 7% last year. Stocks rebounded from their session lows on the Johannesburg Stock Exchange (JSE), boosted by resources as gold and palladium prices rose. Sanlam Private Wealth Portfolio Manager Nick Kunze said, “We’re taking a bit of guidance from global markets, all-time highs on the S&P 500, all-time highs on the Nasdaq, and then dragging the likes of the JSE upwards.” The mining index rose 2.19 percent, driven by Anglo American Platinum, which rose 5.02 percent, and Northam Platinum, which rose 4.46 percent. The stock of Sibanye Stillwater increased by 2.98 percent. The main Johannesburg all-share index increased by 1.45%, while the Top-40 index increased by 1.59%. Following a two-day sell-off, Steinhoff, a retailer attempting to recover from a massive accounting scam, jumped 21.38 percent. It was announced on Wednesday that Hamilton, which sued Steinhoff on behalf of significant South African asset managers, had withdrawn their appeal with a Dutch court, which was related to the retailer’s proposed settlement plan, which had been cast into doubt by another court last Friday. Government bonds rose in price, with the yield on the 2030 instrument falling 2 basis points to 8.9%. (Alexander Winning and Nqobile Dludla contributed reporting.) Mark Potter edited the piece.)/n
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