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S.Africa's rand weaker against dlr, stocks down

Fri Oct 9, 2009 11:59am EDT

Stocks

   

* Rand weakens as dollar rebounds

* Stocks snap a 4-day winning streak

JOHANNESBURG, Oct 9 (Reuters) - South Africa's rand weakened against the dollar on Friday as the greenback rebounded against major currencies while stocks fell, snapping their four-day winning streak.

The Johannesburg Top-40 index .JTOPI lost 0.7 percent to 22,726.69 points, while the broader All-Share index shed 0.58 percent to 25,380.05 points.

"I think people are just taking a breather," said Tubby Goodwin, a trader at Investec Securities.

"I just think we have had weaker metal prices ... a much stronger rand and there are some people that are just trying to sit back and see where the markets goes."

At 1525 GMTZAR=D3 the rand stood at 7.36 against the dollar, 0.4 percent weaker than its previous close of 7.33.

"We really have been following the dollar quite closely (today)," said Jim Bryson, chief dealer at Rand Merchant Bank.

The rand has gained 3.6 percent against the dollar this week on the back of stronger metal prices and a dollar that was on the backfoot for most of the week.

"It's been volatile this week ... the main driver for the rand over this week has been the dollar ... the commodities helped sentiment-wise," Bryson said, adding the rand would likely trade in the 7.30 to 7.50 range in the next week.

Spot Gold XAU= retreated after hitting a record of $1,061.2 on Thursday, while spot platinum XPT= lowered to $1,337 an ounce from $1,348 an ounce in the week.

Anglo Platinum (AMSJ.J) was the biggest loser, slipping 3.5 percent to 689 rand, while African Rainbow Minerals (ARIJ.J) dipped 2.28 percent to 152.45 rand.

Telco counters were among the losers with the JSE telecoms index .JTELE down 2.15 percent as investors moved out of telco's on lack of activity in the sector after the potential MTN and Bharti Airtel (BRTI.BO) potential tie up collapsed.

Africa's biggest mobile operator MTN (MTNJ.J) fell 2.32 percent to 126.05 rand, fixed line operator Telkom (TKGJ.J)was off 1.77 percent to 41.55 rand, while Vodacom (VODJ.J) was 1.09 percent to 54.40 rand weaker.

"I think profit-taking continued, people are getting out of the sector, corporate news have come to an end," Goodwin said.

Cement maker PPC (PPCJ.J) bucked the trend gaining 2.12 percent to 33.70 rand after being hit by weaker cement sales earlier in the week.

"PPC cement sales are down 11 percent, they did take a bit of a hiding. I don't know if it's maybe judt some people coming in bargain hunting, because after the cement sales came out they did take a bit of a hiding," Goodwin said.

A trader said depending on the rand's direction the local equities market could pull back a bit next week, moving sideways with nervous trading.

South African government bonds weakened, with the yield on the 2015 bond ZAR157= up 4.5 basis points to 8.42 percent and that on the 2036 note ZAR209= increasing by the same margin to 8.59 percent. (Reporting by Vuyani Ndaba and Phakamisa Ndzamela)



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