Tuesday 17, July 2018 by Bloomberg

Johannesburg stocks slips as the rand strengthens


South African shares as a whole have not been immune to the general risk-off in emerging-market stocks. 


The rand’s gain has sent traders spilling out of shares of companies that generate dollar earnings, which make up almost a third of the benchmark FTSE/JSE Africa All-Share Index.

In addition, foreign investors have cut holdings of South African equities amid a sell-off of emerging-market assets triggered by rising US Treasury rates and escalating trade tensions between Washington and Beijing.

“Rand-hedges are under some pressure now,” said Peter Takaendesa, a portfolio manager at Cape Town-based Mergence Investment Managers.

The benchmark gauge is down 3.1 per cent since15 June, with mining companies including Sibanye Gold Ltd. and Impala Platinum Holdings Ltd. among the worst performers as the rand gained 1.8 per cent against the dollar.

In that period, foreigners were net sellers of South African equities for 12 days out of 21, cutting inflows this year to ZAR 14.4 billion ($1.1 billion).


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