Rand strengthens on French election results

The rand broke through the critical R13-to-the-dollar level yesterday thanks to a softer greenback and stronger global equities markets following a market-friendly result in the first round of the French presidential elections.

The rand was at R12.9923 to the dollar in late afternoon trade, from Friday's R13.1286. At one stage it dipped as low as R12.87.

It was at R14.1216 to the euro from R14.0590 and at R16.6161 to the pound from R16.7946.

The euro also strengthened on news that centrist candidate Emmanuel Macron had easily won the first round of the poll in France.

Momentum SP Reid analysts attributed the dollar's losses to Macron's gains against his right-wing opponent, Marine le Pen - and dollar weakness favoured the rand.

PSG Wealth chief investment officer Adriaan Pask said the outcome of the first round of the election lowered the risk of a "Brexit-like shock" and sparked a mass unwinding of safe-haven trades.

The French elections dominated global trade, with markets clearly excited about the chances of pro-growth, pro-euro Macron.

Rand Merchant Bank analyst John Cairns said the election seemed to have gone according to expectations but markets rallied on the relief that the worst outcome had not played out yet.

The JSE was firmer although gold-mining stocks fell sharply, while banks and financial stocks gained.

On the JSE the All Share was 0.79% higher at 52607.1 points and the top 40 added 0.78%. Gold miners had lost 5.94%, platinum and precious metals 1.79% and resources 0.52%. Banks rose 2.9% and general retailers were up 2.36%. Financials added 1.90% and industrials firmed 0.85%.

Diversified miner Glencore lost 0.6% to R50.60 and BHP Billiton 0.93% to R203.67.

Iron-ore producers were mostly down. Kumba Iron Ore lost 3.84% to R177.65.

Gold Fields tumbled 7.23% to R47.11. AngloGold Ashanti shed 5.79% to R156.29.

Barclays Africa led the gains among the four big banks, rising 3.54% to R149.48, followed by Nedbank, which added 3.36% to R228.54. Among financials, Sanlam added 2.71% to R69.84 and Discovery 3.77% to R131.98.

Steinhoff International gained 3.61% to R66.31.