South Africa’s rand strengthened on Wednesday, as investors turned their attention abroad after President Cyril Ramaphosa’s re-election as leader of the governing African National Congress (ANC) party helped ease some domestic uncertainty.
At 1528 GMT, the rand traded at 17.1800 against the dollar, 0.72% stronger than its previous close.
“As South Africa moves on from the ANC’s elective conference and the perceived risks abate, the focus once again turns abroad,” ETM Analytics said in a research note, flagging the war in Ukraine and the rapid spread of COVID-19 through China.
Ramaphosa defeated former health minister Zweli Mkhize in a two-horse race on Monday, clearing the way for him to contest the presidency again at 2024 elections.
On the Johannesburg Stock Exchange, the Top-40 (.JTOPI) index ended 1.12% higher, while the broader all-share (.JALSH) index closed up 1.09%, buoyed by mining companies.
Miners Impala Platinum Holdings Ltd (IMPJ.J) and Northam Platinum Holdings Ltd (NPHJ.J) were the top gainers, ending up 3.91% and 3.85% respectively, boosted by an increase in prices of precious metals.
The government’s benchmark 2030 bond fell, with the yield up 5.5 basis points to 10.210%.
