Rand rattled by stronger U.S payrolls data, South African stocks slip

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JOHANNESBURG (Reuters) – The rand slumped on Friday as data showing U.S. job growth rebounded strongly in June sent the dollar sharply higher, while the resources sector led South African stocks lower.

The South African currency was on course for a fall of around 0.8% for the week after dropping 1% against the U.S. dollar to 14.1900.

In fixed income, the yield on the benchmark government bond due in 2026 added 9.5 basis points to 8.170%.

On the bourse, the benchmark JSE Top-40 Index fell 0.4% to 51,539 points, while the broader All-Share Index dropped 0.4% to 57,590 points.

Bullion shares fell 1.72%, with Gold Fields down 2.27% to 71.93 rand and AngloGold Ashanti dropped 2.08% to 378.80 rand.

Iron Ore supplier Kumba Iron Ore, was among the biggest fallers, down 7.34% to 471.68 rand.

“General commodity prices have come lower mainly due to concerns within the iron ore space that is why we saw single commodity counters like Kumba taking a big knock today,” said Paul Chakaduka, a trader at Johannesburg-based Global Trader.

Drugmaker Aspen Pharmacare, was among the fallers, down 4.89% to 99.64 rand after it said it had terminated talks with a potential partner in Europe.

Reporting by Alex Winning and Tanisha Heiberg; Editing by Alexander Smith

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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