JOHANNESBURG Feb 22 South African bond yields
spiked on Wednesday before easing back after Finance Minister
Pravin Gordhan targeted the wealthy with tax hikes, underscoring
the challenge of boosting revenues to plug the budget gap.
The benchmark 2016 issue bond softened while
Gordhan spoke, with the yield rising 6 basis points at one point
ti 8.79 percent. At 1520 GMT it had recovered a bit to 8.765
"While borrowing requirements are not substantially changed,
the overall mix of measures, even with further attempts to cut
spending, will do very little to boost confidence," said Razia
Khan, Standard Chartered Bank's Chief Africa Economist.
The rand was little changed, holding onto earlier
gains to trade 0.35 percent higher at 13.0950/dlr at 1530 GMT.
On the bourse, mining shares were under pressure on
faltering commodity prices with AngloGold Ashanti
topping the decliners list on the benchmark index.
The blue-chip JSE Top-40 index ended 1.06 percent
lower at 45,073 and the broader All-share index index
was down 0.95 percent at 52,088.
AngloGold Ashanti dropped 4.3 percent to 160.20 rand,
weighed down by 'sell" rating downgrade from several brokers
that include those at Citigroup and stalling momentum in the
price of gold.
However, rival Sibanye Gold inched up 0.3 percent
to 28.06 rand after the company flagged a more than three-fold
surge in annual profit.
Elsewhere, Murray & Roberts was flat at 15 rand
after Germany's ATM Holding said it had bought 25 percent stake
in the construction firm, igniting speculation that it might
looking for a tie-up with the South African company.
(Reporting by Tiisetso Motsoeneng and Ed Stoddard)