JOHANNESBURG (Reuters) -South African shares were subdued on Tuesday as the brewing U.S. banking crisis continued to weigh on global markets while the rand traded higher on appetite for emerging market currencies sparked by the fallout.
The blue-chip Top 40 index closed around 0.5% lower while its broader all-share index was down around 0.7%.
“These are quite big banks that have gone down and I think its almost a hangover from what started on Friday with these banks that’s still negatively affecting markets,” said Wayne MuCurrie, portfolio manager with FNB.
Resources, generally the most expensive market sector, are the most negatively affected by global issues, MuCurrie added.
Separately, South Africa’s total mining output fell 1.9% year on year in January compared with a revised 3.6% fall in December, figures from Statistics South Africa showed.
At 1624 GMT, the rand traded at 18.1550 against the dollar, 0.38% firmer than its previous close on Monday.
The dollar <=USD> was last trading slightly higher at 103.8 against a basket of currencies, after languishing near a multi-week low.
Like most emerging market currencies, the rand often takes cues from global drivers such as the movement of the U.S. dollar in the absence of major local economic data points.
South Africa’s benchmark 2030 government bond was slightly firmer, with the yield down 1 basis point to 10.015%.
(Reporting by Tannur Anders and Alexander Winning; Editing by Rashmi Aich, Bhargav Acharya and James Macharia Chege)
