Rand hits 10-month highs, stocks stumble

Johannesburg - The rand touched a new 10-month high against the dollar early on Wednesday as the greenback sank after weak US productivity data again pushed back expectations of a Federal Reserve rate hike.

Local stocks fell, out of step with a global equities rally, as the currency rally took its toll on shares in companies that make most of their money in foreign earnings.

Platinum producers bucked that trend after palladium surged overnight to 14-month highs and platinum rose over 2% on a wave of short covering. That lifted Anglo American Platinum 3.71% to R469.68 and Impala Platinum 3.8% to R67.47.

Overall, the Top-40 index fell 0.83% to 45 132 points while the broader all-share dropped 0.51% to 52 218 points.

"That's a result of some of the big moves in the rand hedges falling on the back of the stronger currency here," said Afrifocus securities portfolio manager Ferdi Heyneke.

Mediclinic International fell 1.61% to R189.40 and British American Tobacco weakened 1.02% to R836.38.

Trade volumes were average with around 286 million shares changing hands, according to preliminary bourse data.

The rand extended recent gains against the weakening dollar, hitting $13.20 at one point in afternoon trade, its best level since Oct 20 last year, according to Thomson Reuters data. At 15:35 GMT it was 0.75% firmer at $13.3025.

The yield on 2026 benchmark government bond down 9.5 basis points to 8.45%.