Bloomberg News

South Africa Stocks, Rand Reverse Gains on European Debt Concern

October 17, 2011

Oct. 17 (Bloomberg) -- South African stocks reversed gains and the rand weakened against the dollar after German Chancellor Angela Merkel’s spokesman said Europe’s leaders won’t provide a quick resolution to the region’s debt crisis.

The FTSE/JSE Africa All Share Index lost 0.3 percent to 31,028.18 by 1:32 p.m. in Johannesburg after earlier trading as much as 1.1 percent stronger. The currency of Africa’s biggest economy weakened 0.9 percent to 7.9013 per dollar, making it the second-worst performer among 16 major currencies tracked by Bloomberg after Norway’s krone.

Merkel has made it clear that “dreams that are taking hold again now that with this package everything will be solved and everything will be over on Monday won’t be able to be fulfilled,” Steffen Seibert, her chief spokesman, said at a briefing in Berlin today. The search for an end to the crisis “surely extends well into next year.”

To contact the editor responsible for this story: Ana Monteiro at amonteiro4@bloomberg.net


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