South Africa's rand extends gains on weak dollar, stocks down


UPDATE 1-South Africa's rand extends gains on weak dollar, stocks down

* •Rand strengthens against weak greenback
    * •Gold shares weak
    * •Rand hedge shares under pressure as stocks fall

 (Adds closing prices, detail, analyst comment)
    JOHANNESBURG, April 20 (Reuters) - South Africa's rand
extended gains against the dollar on Thursday and government
bonds firmed, helped by slowing inflation and the government's
rejection of nationalisation of mines and banks.
    Stocks were little changed, as rand hedges and gold shares
    At 1500 GMT, the rand <ZAR=D3> had gained 0.79 percent to
13.1725 per dollar, its firmest since March 31, compared to a
close of 13.2775 overnight in New York.
    In fixed income, the yield for the benchmark government bond
due in 2026 <ZAR186=> fell 12 basis points to 8.670 percent.
    "The investment community's view is that inflation is
falling sharper than what the Reserve Bank currently anticipates
and the country's real rate story later this year is going to
look a lot more compelling than what it does at the moment,
therefore the support for government bonds remains," said BNP
Paribas Cadiz Securities Jeffrey Schultz.
    Statistics South Africa's data showed on Wednesday consumer
inflation eased in March and Finance Minster Malusi Gigaba
dismissed calls from one of his own advisers for the
nationalisation of banks and mines.[nL8N1HR1YQ][nL8N1HR1OR]
    On the bourse, the benchmark Top-40 <.JTOPI> index closed
0.08 percent down at 45,735 points, while the broader All-share
index <.JALSH> lost 0.09 percent to 52,496 points.
    As the rand strengthened, investors sold off shares in local
companies that earn the bulk of their revenues in hard currency,
known as rand hedge shares, dragging the index lower.
    "Rand hedge shares are a bit lower, it's the combination of
the slightly lower gold price and the rand strength," said
Cratos Capital equities trader Greg Davies.
    BHP Billiton <BILJ.J> declined 0.36 percent to 203.77 rand,
Richemont SA <CFRJ.J> fell 0.45 percent to 104.44 rand, while
Mediclinic International <MEIJ.J> dropped 0.77 percent to 122.97
    Gold shares also weakened as the bullion price came under
pressure, with markets awaiting the outcome of the looming
French presidential election.
    Harmony Gold <HARJ.J> was down by 5.02 percent to 31.42
rand, while Sibanye Gold <SGLJ.J> dropped 4.29 percent to 29.86

 (Reporting by Olwethu Boso; Editing by Catherine Evans)
 ((; +27 11 775 3158;))


This article appears in: Politics , Stocks , World Markets
Referenced Symbols: BILJ , CFRJ , HARJ , MEIJ , SGLJ

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