Thursday, 12 March 2015 02:19
JOHANNESBURG: South African stocks sank to a one-month low on Wednesday on the back of a wilting local currency and as investors focus on the likelihood of higher interest rates in the United States.
Johannesburg’s Top-40 index was down 0.7 percent to 45,826 and the All-share shed 0.6 percent to 51,753, the lowest since early February.
The local rand currency is trading near 13-year lows against the dollar on the increasing view the Federal Reserve may raise rates as early as June.
Foreign investors converting proceeds after selling South African assets into hard currency for repatriation are being hard hit by the weakening rand, part of emerging market currencies suffering from a sell off.
Resource producers listed in Johannesburg were hardest hit as spot prices remained depressed.
Anglo American Platinum was the worst performer after falling 4.6 percent as spot prices of the precious metal slumped to their lowest level since July 2009. Its parent unit Anglo American lost 3.6 percent.
Trade was brisk with 331 million shares changing hands, well above last year’s daily average of 183 million shares.
Copyright Reuters, 2015
