RAND FIRMER ON ANC’S MOVE

THE RAND strengthened yesterday, helped by President Cyril Ramaphosa winning the ANC’s backing over the “Farmgate” scandal and better-than-forecast economic growth figures.

Ramaphosa gained a lifeline after the ANC said on Monday it would request its lawmakers to reject a report that said he may have violated the constitution over a large amount of foreign currency stolen from his private game farm.

The report by a panel appointed by the speaker of parliament was due to be debated yesterday, but that was delayed to December 13.

Ramaphosa has denied wrongdoing over the Phala Phala farm robbery and has challenged the panel’s report in court.

Investors fear uncertainty and that any other president could slow down or reverse economic reforms, increase government spending and take on more debt at levels they deem unsustainable.

At 5.45pm, the rand traded at R17.36 against the dollar, up about 0.6% on its previous close.

“The rand is performing better as there is more clarity around how the whole Phala Phala mess will be handled,” said Wichard Cilliers, head of market risk management at TreasuryONE.

Investec economist Annabel Bishop said strong GDP figures also buoyed the rand. Third-quarter output grew 1.6% quarter on quarter, better than predictions for a 0.6% expansion.

The JSE’s all share index closed 0.18% weaker at 74 557.31 points, mirroring falls in global shares. The blue-chip Top40 index also shed 0.18% to 68 419.79 points.

Meanwhile, oil prices retreated in a volatile market yesterday as the dollar stayed strong and economic uncertainty offset the bullish impact of a price cap placed on Russian oil and the prospects of a demand boost in China.