The South African rand rallied in early trade on Thursday after better than expected December credit extension data and the announcement that the Telkom initial public offering (IPO) would take place on February 25.
At 0945 local time the rand was trading at 8,5300 to the dollar from a New York close of 8,5705 on Wednesday and 8,7655 on Tuesday. The local unit was quoted at 9,2395 to the euro from Wednesday’s close of 9,4145 and Tuesday’s
close of 9,4751.
The rand was at 14,0563 after it had briefly dipped below R14 per sterling in early trade. On Wednesday the rand closed at 14,0770 and on Tuesday it closed at 14,3776.
“The rand is moving towards this year’s best level of R8,34 per dollar.
It is remarkable to think that just a week ago we seemed to be heading for R9,10
per dollar,” a currency trader said.
The rand has so far traded only two days above R9 per dollar this year with a worst level of 9,0773 reached on January 22. The best level this year of R8,34 per dollar was touched on January 6.
Credit extension y/y growth plunged to its lowest increase since November
1966, at just 4,75% y/y in December 2002 compared with 14,15% y/y in December
2001, 9,18% y/y in November 2002 and a recent peak of 15,62% y/y in January
2002.
The median forecast for credit extension to the private sector was an increase of 6,8% y/y. September’s 9,29% y/y increase was the first single digit growth since November 2001. The range of forecasts for credit extension was from 4,5% y/y to 8,4% y/y.
The South African government today announced details of the long awaited initial public share offering by South African telecommunications company Telkom.
A global offering of 139,3-million ordinary shares in Telkom is to be made, which may be increased to 167,1-million shares. The initial public offering price is estimated between R33,50 and R40,90 per ordinary share, which will raise between R4,7-billion and R6,8-billion. – I-Net-Bridge