South African rand gains as Ramaphosa’s ANC win calms markets

Updates prices to reflect afternoon trade

JOHANNESBURG, Dec 20 (Reuters)South Africa’s rand held on to gains against the dollar on Tuesday after President Cyril Ramaphosa was re-elected as leader of the governing African National Congress (ANC) party on Monday.

At 1535 GMT, the rand ZAR=D3 traded at 17.2875 against the dollar, 0.36% stronger than its previous close.

The local currency jumped on monday as Ramaphosa beat former health minister Zweli Mkhize to secure a second five-year term as ANC leader, clearing the way for him to contest the presidency again at 2024 elections.

ETM Analytics said in a note that the news of Ramaphosa’s re-election came as a relief to investors.

“All eyes will return to offshore developments, including global equity market performance, China’s unfolding COVID experience and the guidance from global central banks,” analysts said, suggesting a calm end to the year.

Shares on the Johannesburg Stock Exchange fell slightly, with the Top-40 index .JTOPI down 0.51%, while the broader all-share index .JALSH closed 0.43% lower.

The government’s benchmark 2030 bond ZAR2030= was marginally down, with the yield up 1.5 basis points at 10.155%.

(Reporting by Anait Miridzhanian and Bhargav Acharya; Editing by Ed Osmond and Shailesh Kuber)


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