Thursday , August 11 2022

Rand companies have been refurbished after Moody's suggestions



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The stake rose 0.37% to 13.9675 to the dollar by 16:07 GMT compared to the end of 14.0200 in New York.

FILE: Photo: Christa Eybers / EWN.

JOHANNESBURG – Strengthened the dollar on Friday, putting it on track to the end of the week marked by the annual Budget higher, after Moody noted that the spending plans of the nation had weakened its policy credibility .

The stocks rose, with Truworths International among those who are very well-managed after presenting detailed half-year results.

The stake rose 0.37% to 13.9675 to the dollar by 16:07 GMT compared to the end of 14.0200 in New York and 14,3700 was low on budget day.

Moody, the last of the three large-scale agencies to hold an investment degree in South Africa, said the government's decision to raise its maximum spending by R16 billion ($ 1.14 billion) did not weaken the credibility of a fiscal policy.

Attention had been made to the response of grading agencies to the Budget, which included consistent prospects for economic growth and debt and tidying for Eskom, a state-owned power company, after concerns it could encourage downgrading.

But analysts Nedbank, Mehul Daya and Walter de Wet wrote in a note on Friday that the market response had been too negative.

"The main point of speaking in the financial markets of South Africa over the last two days has been the ability to include weakness and, indeed, strengthen after the 2019 National Budget," they said.

They add that the budget has presented in the "most credible possible form, which would mean that South Africa could avoid credit downgrading by Moody but we could continue to see negative prospects."

Government bonds were confirmed, with the product on 2026 benchmark paper facilitating 1 basis point to 8.715%.

By bus, the Johannesburg divide index increased 0.92% to 55,992 points, while the top-40 index climbed 1.08% to 49,735 points.

There was a high-end medium fashion retailer on top of the Top-40 index, rising 5.44% to 76.02 after the company provided more context on its half year results released on Thursday and announced the launch of new concept stores in the UK and South Africa to boost sales there.

Telecoms Blue Label closed 3.81% stronger to R5.45 after saying that a consortium had agreed to take a minority in the third carrier Carrier C, South Africa, who owns 45% of it. He said the agreement would help the company and its debts.

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