Johannesburg - The rand turned firmer against the dollar in a volatile session on Monday, gaining more than 2.2% to a week’s high in what some traders said was a retracement from oversold levels last week.
The rand was last at R7.87/$, up 2.14% after earlier touching R7.8598/$, its strongest level since October 17.
South African stocks closed at their highest level in nearly three months as demand for resources firms rose with hope that European Union leaders will agree on a solution to their region’s debt woes later this week.
Platinum miner Lonmin [JSE:LON] was the top performer, gaining 3.8% to R137, while bourse heavyweight BHP Billiton [JSE:BIL] rose 2.5% to R251.
European Union leaders at the weekend discussed plans for bank recapitalisation and how to leverage their rescue fund to try to stop bond market contagion, but a final decision was postponed until a second summit on Wednesday.
“The sentiment is quite positive going into the discussions (on Wednesday),” said Michele Santagelo, a portfolio manager at Newstrading.
Chinese data
Data from China showing that manufacturing in the world’s fastest-growing economy grew moderately in October also helped boost investor appetite, he said.
Johannesburg’s Top 40 - (Tradeable) [JSE:J200] index of blue chips added 0.73%to 28 370.97, its highest close since late July. The broader All Share [JSE:J203] index rose 0.65% to 31 654.31.
Lonmin, the world’s third-largest producer of platinum, outpaced Johannesburg’s platinum miner’s index.
The index rose 0.13% on Monday but has slid over 25% this year, making it one of the worst performers among blue chips, as concerns over the global economy weigh on prices of the industrial metal that is also used in jewellery.
Mondi [JSE:MND] was the second-biggest gainer after being oversold last week following a rate cut by brokerage Credit Suisse. The paper maker’s stock closed 2.6% stronger at R59.87.
The rand was last at R7.87/$, up 2.14% after earlier touching R7.8598/$, its strongest level since October 17.
South African stocks closed at their highest level in nearly three months as demand for resources firms rose with hope that European Union leaders will agree on a solution to their region’s debt woes later this week.
Platinum miner Lonmin [JSE:LON] was the top performer, gaining 3.8% to R137, while bourse heavyweight BHP Billiton [JSE:BIL] rose 2.5% to R251.
European Union leaders at the weekend discussed plans for bank recapitalisation and how to leverage their rescue fund to try to stop bond market contagion, but a final decision was postponed until a second summit on Wednesday.
“The sentiment is quite positive going into the discussions (on Wednesday),” said Michele Santagelo, a portfolio manager at Newstrading.
Chinese data
Data from China showing that manufacturing in the world’s fastest-growing economy grew moderately in October also helped boost investor appetite, he said.
Johannesburg’s Top 40 - (Tradeable) [JSE:J200] index of blue chips added 0.73%to 28 370.97, its highest close since late July. The broader All Share [JSE:J203] index rose 0.65% to 31 654.31.
Lonmin, the world’s third-largest producer of platinum, outpaced Johannesburg’s platinum miner’s index.
The index rose 0.13% on Monday but has slid over 25% this year, making it one of the worst performers among blue chips, as concerns over the global economy weigh on prices of the industrial metal that is also used in jewellery.
Mondi [JSE:MND] was the second-biggest gainer after being oversold last week following a rate cut by brokerage Credit Suisse. The paper maker’s stock closed 2.6% stronger at R59.87.