JOHANNESBURG: South Africa's rand weakened against the dollar on Thursday as manufacturing and mining data added to a gloomy economic outlook and global events weighed on emerging markets, while stocks fell to a three-month low as gold and platinum mining shares slumped.
At 1507 GMT, the rand traded at 12.9050 per dollar, 0.64 percent weaker than its New York close on Wednesday, as data showed that manufacturing output declined by more than 4 percent in April and mining production slowed.
"The rand traded on the back foot (on Thursday) due to weaker-than-expected mining and manufacturing production data releases for April, which comes on the back of Tuesday's shock GDP figures," NKC African Economics analyst Gerrit van Rooyen said.
Africa's most advanced economy slipped into its first recession in eight years, moving many economists to reconsider growth forecasts for this year.
Ratings agency Fitch said on Thursday it sees South Africa missing the revenue and deficit forecasts set out in a February budget and that infighting within the ruling African National Congress remained a key risk to its sovereign credit rating.
Downgraded to "junk" by Fitch and S&P Global Ratings in April, Moody's has put South Africa on review for a downgrade and is expected to announce its ratings decision this week.
In fixed income, the yield on the benchmark government bond due in 2026 rose 0.5 basis point to 8.505 percent.
On the equities market, the All-Share index weakened 0.31 percent to 51,958 points, a level last seen on March 27, while the benchmark Top-40 index fell 0.16 percent to 45,733 points.
Commodity shares came under renewed selling pressure as investors awaited the release of the controversial revised mining charter expected to be gazetted and become law next week.
The Chamber of Mines has taken the government to court over ownership interpretations in the latest draft, which requires companies to keep black ownership at 26 percent even if black shareholders sell their stakes.
BP Bernstein trader Vasili Girasis said investors were betting on a negative outcome.
"Foreigners are just dumping our stocks at this stage and waiting until they get more clarity on what exactly is going to happen. Definitely not looking good for our commodity stocks at this point, just massive selling pressure," Girasis said.
Platinum miner Lonmin declined 5.21 percent to 12 rand, Northam Platinum weakened 3.66 percent to 41.06 rand, while the gold index fell 2.25 percent.
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