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JOHANNESBURG, June 5 (Reuters) – South Africa’s rand edged higher early on Wednesday, as focus remained on which coalition partner the African National Congress (ANC) would choose after losing its majority for the first time in last week’s election.
At 0650 GMT, the rand traded at 18.6875 against the dollar ZAR=D3, 0.16% stronger than its previous close.
The ANC is set to hold high-stakes internal discussions on Wednesday as coalition talks get underway. The party of liberation hero Nelson Mandela could partner with either the business friendly Democratic Alliance or the radical left Economic Freedom Fighters.
“Investors will require some positive news from the coalition discussions that will ease concerns about the sustainability of SA’s (South Africa’s) economy,” ETM Analytics said in a research note.
Domestic focus will also be on the S&P Global, which will release its whole-economy purchasing managers’ index survey at 0715 GMT, which will shed light on business conditions in Africa’s most industrialised economy in May.
South Africa’s benchmark 2030 government bond ZAR2030= was marginally weaker in early deals, with the yield up 0.5 basis point to 10.580%.
(Reporting by Bhargav Acharya; Editing by Andrew Heavens)