South African assets weaker in early trade

The rand retreated early on Monday, in line with falls in local bonds and stocks, as investor appetite for riskier assets was muted.

The rand was 0.27% weaker at 14.19 per dollar at 0702 GMT, having closed in New York at 14.15.

The currency is expected to trade between 14.05 and 14.35 to the dollar on Monday, NKC African Economics wrote in a note.

The rand had been supported on Friday by upbeat trade data showing a surplus of R8.79 billion in August.

South Africa-focused investors were awaiting the release of the Absa/BER manufacturing Purchasing Managers’ Index (PMI) for September, as well as new vehicle sales, on Monday.

In fixed income, the yield on the benchmark government bond due in 2026 rose 2 basis points to 9.020%, reflecting weaker bond prices.

Stocks were also weaker, with the Top 40 Index down 0.4% in early trade.