Rand weak in morning trade

The rand is slightly weaker this morning after some gains yesterday

The rand is slightly weaker this morning after some gains yesterday. Analysts say the unit is in a consolidation phase at the moment, but the outlook for the rand doesn't look pretty going forward. They say the power crisis, which is likely to curb economic growth this year, has weighed on investors and importer dollar demand could keep the currency on the backfoot.

Bonds ended firmer yesterday with the yield of the benchmark R153 government bond at 9.26%.

The JSE closed above the 29 000 level after gaining almost two percent. The local bourse was supported by firmer world markets and stronger metal prices. The all share index was 537 points higher at 29 040. Financials were 262 points firmer at 20 281 and industrials gained 337 points to 22 535. The gold board was 7 points up at 2 280 and the Top 20 resources climbed 1 434 points to 62 805.

World markets
US stocks dropped overnight as the credit crunch surfaced unexpectedly in the municipal bond market and after the Federal Reserve chairman said that he sees sluggish economic growth ahead.
The Dow Jones lost 175 points to 12 377. The Nasdaq Composite dropped 41 points to 2 333.

European shares ended mixed yesterday. London's FTSE 100 was 1 point lower at 5 879. In Paris the Cac 40 was 3 points firmer at 4 859, while Frankfurt's DAX lost 11 points to 6 962.

Asia
Markets in the Asia-Pacific region are in the red this morning. In Tokyo the Nikkei is down 197 points to 13 429. In Hong Kong, the Hang Seng is 402 points lower at 23 620, while Sydney's ASX lost 107 points to 5 577.

Platinum is trading at $2 000.50 and the spot price of Brent crude oil is $96.08 cents a barrel.

See the latest indicators at the bottom of the front page.