Rand weaker, stocks down in post cabinet drift

South Africa‘s rand weakened early on Friday, struggling for clear momentum as political drivers faded after President Cyril Ramaphosa selected his cabinet, with investors looking ahead to economic growth figures due next week.

At 0800 GMT the rand was 0.2% weaker at 14.77 per dollar compared with a overnight close of 14.84 overnight in New York.

Ramaphosa announced his smaller cabinet late on Wednesday, following on from a pre-election pledge to reform and revive an ailing economy and attract foreign investors.

The cabinet was well received by markets, helping the currency pullback from 5-month lows before the announcement.

Statistics SA publishes first quarter gross domestic product figures on Tuesday, with increasing chance growth contracted in the quarter following slumps in mining and manufacturing.

The central bank last its 2019 economic growth forecast to 1.0% from the 1.3% forecast March, and said a first quarter GDP contraction was likely.

Bonds weakened, with the yield on the benchmark 10-year government bond up 1 basis point to 8.495%.

Stocks slipped in early trade, with the Johannesburg Stock Exchange’s Top-40 down 0.64% and the broader All-Share index 0.57% lower.

Read: Mr Price expects tough first half

Budget retailer Mr Price reported a 6.2% rise in full-year earnings on Friday, as its apparel and homeware businesses gained market share. It shares jumped 7.33% to R190.64.