• Inside Labour

    Without radical policy change SA's social fabric will continue to fray, says Terry Bell.

  • Long live your gadget

    Real gadget protection tends to cost real money, writes Arthur Goldstuck.

  • Taking SA for a ride

    The ANC seems to think all South Africans are idiots, says Mzwandile Jacks.

Data provided by iNet BFA
Loading...
See More

Smooth ANC vote keeps rand stronger

Dec 19 2012 09:18 Reuters

(Supplied)

Related Articles

Mangaung keeps rand off day’s lows

Rand jumps to 10-week high

Rand rallies on Zuma re-election

Economic reforms bleak under Zuma

Investor relief as Ramaphosa steps forward

Business meets politics

 

Johannesburg - The rand traded near a two-month high early on Wednesday and looked to further those gains in an upbeat market after an internal ANC election passed off smoothly and US officials appeared to make progress in talks about the fiscal cliff. 

The unit held firm on Tuesday after President Jacob Zuma won a second term as party leader, almost certainly giving him a second five-year term as the country's president in 2014 elections. 

Investors also took heart at the ANC's choice of respected businessman Cyril Ramaphosa as deputy president. 

"There could have been a shift towards a leader or group of leaders that may favour greater state intervention," said Christopher Shiells, emerging market analyst at Informa Global Markets. 

"Investors see Ramaphosa as pro-business and are hoping that early signs of a more business-friendly approach develop during the rest of the conference." 

The rand was at R8.4525/dollar at 06:00 GMT, just slightly firmer than its previous close in New York on Tuesday. 

"There is something to be said about understanding the environment in which one will be trading and it is clear that with Zuma at the helm, it will be business as usual and more of the same," ETM analysts said in a note. 

"The markets can be content in the knowledge that someone who understands business and the importance of delivery is playing a key role," they added, referring to Ramaphosa. 

The conference ends on Thursday and with the leadership election out of the way, investors will focus on any policy changes such as new regulations or taxation for the mining sector. 

Changes look to be on the cards after Deputy Finance Minister Nhlanhla Nene said on Monday the government would not be "reckless" with the decision. 

Optimism that the United States would resolve expiring laws that would cut government spending, raise taxes and reduce the budget deficit - but also likely plunge the world's biggest economy into recession - were also boosting risk appetite. 

The South African Reserve Bank will release its business cycle indicators at 07:00 GMT. The leading indicator ticked up by 0.1% in September and is expected to have continued its slow rise in October.

 

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

rand  |  markets
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
4 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

“Hippie sense makes business sense,” an entrepreneur said, adding that "purpose" was core to success.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...