Rand, stocks weaker as domestic economy concerns weigh

July 5, 2016 7:23 AM

Stocks were also weaker, mainly tracking their Asian counterparts with the benchmark Top-40 index down 0.4 percent at 45,842 points while the All-Share index shed 0.5 percent to 52,204 points.

South African Rand coins are seen in this photo illustration taken September 9, 2015.

South Africa's rand fell 1.6 percent against the dollar early on Tuesday, weighed down by worries about the ailing domestic economy which added to renewed fears of a global slowdown, denting risk appetite.

Stocks were also weaker, mainly tracking their Asian counterparts with the benchmark Top-40 index down 0.4 percent at 45,842 points while the All-Share index shed 0.5 percent to 52,204 points.

The rand stumbled to a session low of 14.8000 to the greenback, and was trading 1.3 percent weaker at 14.7500 by 0755 GMT.

The currency been attempting to recoup the heavy losses triggered by Britain's vote to leave the European Union on June 23. But a slew of negative domestic data has refocused investors' attention on sluggish growth in Africa's most industrialised country.

On Tuesday, a survey showed consumer confidence slipped further into negative territory in the second quarter of the year, signalling households' concerns about the gloomy economic outlook.

A separate report showed the private sector slipped back into contraction in June as output fell and companies cut jobs.

"The combination of weak data is having an effect on the rand," NKC African Economics analyst Hanns Spangenberg said, noting that jobs data released on Monday showed a 0.2 percent drop in people in formal sector employment in the first quarter.

South African debt weakened alongside the rand, with the benchmark instrument maturing in 2026 adding 6.5 basis points to 8.75 percent.