Rand back over R12/$ as the hope of early Zuma exit fades

The Johannesburg Stock Exchange (JSE) building in Sandton. It has operated as a market place for the trading of financial products for nearly 125 years.

JOHANNESBURG – The rand went back over R12 to the dollar on Tuesday morning as hopes of ANC president Cyril Ramaphosa replacing President Jacob Zuma before the February 8 state of the nation address faded.  The rand was trading at R12.02 to the dollar, R14.87 to the euro and R16.88 to the pound at 7am.

The JSE top 40 index, that closed 1.22% lower on Monday, looked set to continue its slide on Tuesday judging by Asian markets and futures contracts.

The closing price of the top 40 spot futures contract on Monday pointed to the index declining 1.27 on Tuesday morning. The Nikkei 225 index was down 1.58%, while Sydney’s S&P 200 index was down 0.81% and Wellington’s NZX 50 index was down 0.35%.

Eskom said it would publish its delayed financial statements on Tuesday– the day before the JSE’s final deadline.

Economist at Investec Bank, Kamilla Kaplan said in her weekly note e-mailed on Friday that sh expected private sector credit extension growth to have slowed to 6% in December from 6.5% in November.

The December figure will bring the average private sector credit extension growth for 2017 down to 5.8%., while the corporate component of private sector credit extension growth is expected to have slowed to 8.6% in 2017 from 11.4% in 2016.

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