Rand firms ahead of President Ramaphosa’s speech

The rand firmed in early trade on Thursday, as investors awaited President Cyril Ramaphosa’s State of the Nation address, which could offer some solution to ease a worsening power crisis.

At 09:14, the rand traded at R17.73 against the dollar.

Investors are demanding some leadership, guidance and clarity on steps being taken to extricate South Africa from its electricity generation crisis.

“The country’s future is at stake, so the rand will be solely focused on the contents of his message,” ETM Analytics said in a note.

Daily power cuts since last year have hammered economic growth and are proving a major test for the governing African National Congress, whose support among voters is sliding.

“A calm, direct and honest assessment, with strict timelines and some accountability, will go a long way to calming nerves,” ETM said, adding that the market perceives significant risks and is positioned for some disappointment.

On the stock market, the Top 40 and the broader all-share indexes opened around 0.3% higher.

The government’s benchmark 2030 bond was stronger in early deals, with the yield down 3.5 basis points to 9.740%.