Rand firmer, stocks down in early trade

The rand firmed against the dollar in early trade on Monday as markets digested news that ratings agency Moody’s opted to hold off publishing a review of the country’s debt on Friday, October 12, as planned.

The rand was 0.5% stronger at 14.44 per dollar at 0700 GMT, having closed in New York at 14.52 on Friday.

Moody’s said it would not publish a review of South Africa’s debt on Friday as was widely expected, without giving a reason for the delay or the next scheduled release date.

Moody’s rates South Africa’s foreign and local currency debt on their lowest investment grade rung of Baa3, with a stable outlook.

“South Africa remains Baa3 with stable outlook, and the absence of action implies that there is no significant change in the credit view from the last time that action was taken,” Rand Merchant Bank analysts Mpho Tsebe and Elena Ilkova wrote in a note.

In fixed income, the yield on the benchmark government bond due in 2026 was flat at 9.245%.

On the stock market, the Top 40 Index was down 0.82% while the broader all-share edged 0.66% lower in early trade.