In spite of the downgrades by Moody’s, the South African rand rallied while the US dollar slid following the release of data on the retail sales and inflation on Wednesday.
The downgrades by Moody’s seemed to have little effect as the weekly gains for the rand was near 2.5 percent, after the trading session on Wednesday as the rand rallied up 1.25 percent at 12.6000 per dollar. MTN the mobile operator stocks fell 2 percent to 111.60 rand to a 4 four month low.
Economist at BNP Paribas Securities SA, Jeffrey Schultz said after a survey that was conducted, which concluded that business confidence went into negative territory in the second quarter to levels of the 2009 recession. With political risk and weakening business activity persisting. He believes that the economy because of negative growth within the gross domestic fixed investment will serve as a blow to policymakers which will continue into next year.
Blue Chip mining companies, Anglo American shares dipped 2.9 percent to 171.71 rand, BHP Billiton share also fell 2.2 percent to 191.04 rand.
The gold index on the Johannesburg Stock Exchange gained 1 percent at 1,337.40 following the US inflation data report.
US Stocks Fall
Data released on Wednesday showed that the monthly US consumer prices and retails sales together with inflation declined. MTN the mobile operator stocks fell 2 percent to 111.60 to a 4 four month low.
Investors focus is now on the Fed who are scheduled to release an announcement on whether they will increase interest rates.
The benchmark Top-40 index fell 0.4 percent at 45,085 points, while the All-share index declined 0.3 percent at 51,489 points.
Government bonds, yield due in 2026 benchmark instrument fell 2.5 basis points to 8.405 percent.
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