CAPITEC: 132,900 0 (0.00%)
South Africa's rand slides alongside EM currencies, stocks steady
* Rand falls tracking EM markets
* Stocks barely changed
JOHANNESBURG, March 28 (Reuters) - South Africa's rand
extended its fall on Thursday, tracking emerging market
currencies as the Turkish lira dropped, and as traders remained
cautious ahead of a Moody's sovereign rating decision on Friday.
Stocks were mostly unchanged as losses in the bullion sector
offset gains elsewhere.
At 1548 GMT, the rand was 0.27 percent weaker at
14.6450 to a dollar.
The rand marked a third consecutive session of losses as
sentiment toward emerging market currencies was hit by a 5
percent drop in the Turkish lira, a key proxy along with the
rand for demand for high-yield currencies.
The lira's slide overshadowed a decision by the South
African Reserve Bank to keep its benchmark repo rate unchanged
at 6.75 percent in a unanimous decision, saying the risks to the
inflation outlook were "more or less evenly
Market focus was also on a sovereign rating by Moody's
scheduled for Friday. Moody's is the only one of the "big three"
agencies to rate South Africa at investment grade, with the
sovereign rated "junk" by S&P Global Ratings and Fitch.
"It will be Moody's decision that ultimately decides how
next week's price action will unfold," said Investec in a note
In fixed income, the yield on the government's 10-year issue
fell 2.5 basis points to 8.7 percent.
On the bourse, the Johannesburg All-Share index
dipped 0.16 percent to 56,060 points, while the Johannesburg
Top-40 index ticked up 0.01 percent to 49,903 points.
Among the decliners were gold stocks, which fell
6.15 percent on the back of a weaker bullion price.
Curbing further losses, Capitec Bank rose 3.86
percent to 1340.00 rand after reporting a 19 percent increase in
annual profit on Thursday.
(Reporting by Olivia Kumwenda-Mtambo, Onke Ngcuka and Tanisha
Heiberg; Editing by Jan Harvey)
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