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JOHANNESBURG, Nov 5 (Reuters) - South Africa’s rand was little changed on Tuesday, as a rally sparked by Moody’s decision to keep the country’s credit rating at investment grade faded.
At 1530 GMT the rand was at 14.7980 per dollar, less than 0.1% stronger than its previous close.
Fund managers had expressed scepticism on Monday that a bounce in the rand would last, given major concerns over the weak economic growth outlook and alarming pace at which government debt is growing.
On Friday Moody’s kept South Africa’s sovereign debt at Baa3, the lowest rung of investment grade, but revised the outlook on that rating to “negative,” which gives the country a window of up to 18 months in which a downgrade could be delivered.
On the local bourse, stocks climbed in line with global peers on hopes that the United States would roll back some of the tariffs it has imposed on Chinese imports.
The Johannesburg Stock Exchange’s Top-40 Index closed up 0.6% to 50,984 points, while the broader All-Share Index ended 0.6% higher at 57,247 points.
“The news with regards to the truce, so to speak, between Trump and Beijing certainly does have a part to play, given that we’ve seen the markets pretty much across the board being fairly healthy today,” said Independent Securities trader Ryan Woods.
Insurer Old Mutual and energy company Sasol were among the biggest winners, with Old Mutual rising 4.19% to 20.41 rand and Sasol closing up 3.65% to 290.89 rand. (Reporting by Mfuneko Toyana and Naledi Mashishi; Editing by Giles Elgood)
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