Rand falls as Moody's cuts growth forecast, stocks firm

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Moody’s is the last of the major international agencies to keep an investment-grade rating on the sovereign and is scheduled to review that assessment in March.

JOHANNESBURG - The rand weakened on Monday, as ratings agency Moody’s cut its forecast for the country’s economic growth due to lacklustre private sector demand at home and power cuts.Moody’s cut its 2020 GDP growth forecast to 0.7% from a forecast of 1.5% set in September, due in part to the detrimental impact of widespread power outages on manufacturing and mining activity.

“The budget speech will be a major risk event that may influence whether South Africa can save or lose its last investment-grade credit rating,” Otunuga added. Amplats, which also has operations in Zimbabwe, jumped 5.4% to R1,329.99 after it said higher metal prices had driven its annual headline earnings per share - the main profit measure used in South Africa - nearly 2-1/2 times higher at R70.87, versus R28.93 a year earlier.

Shares in the miner surged to a 3-1/2-year high, closing 5.89% firmer at R44.58. Amplats and Sibanye topped the Johannesburg All-Share index as well as the Top-40 index.

 

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Weren't Moodys accused of falsifying reports

Who's money is that lying there... 😒

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