Finance & Business World

South Africa’s gold and foreign currency reserves probably rose for a third consecutive month in April as a stronger rand made it cheaper for the central bank to buy dollars.

Gross reserves increased to $34.4 billion from $34.1 billion, according to the median estimate of two economists surveyed by Bloomberg. The Pretoria-based central bank will publish the data on its Web site at 8 a.m. on May 8.

The rand surged 10 percent against the dollar in April, after gaining 11 percent in the previous month, enabling the Reserve Bank to add to reserves. The central bank is under pressure to build reserves to cover rising import requirements, efforts that were undermined since last year by the global financial crisis.

“The bank is likely to take full opportunity of the stronger exchange rate as the current rally may not last,” said Danelee van Dyk, an economist at Standard Bank Group Ltd., Africa’s largest bank. “Foreign exchange purchases are expected to have been more robust than they have been over the past few months.”

Among other economic statistics, Investec Asset Management will today publish its Purchasing Managers Index, which fell to a record low of 36 in March.

The National Association of Automobile Manufacturers of South Africa will release vehicle sales data tomorrow, along with the latest business confidence index from the South African Chamber of Commerce and Industry.

Unemployment

Statistics South Africa is also due to publish first- quarter unemployment data tomorrow. The 21.9 percent jobless rate is the highest of 62 countries tracked by Bloomberg payday cash advance.

On the political front, South Africa’s National Assembly will convene in Cape Town on May 6 for the first time since April 22 elections for the swearing in of 400 legislators from 13 political parties. The legislature will then elect the country’s new president.

African National Congress President Jacob Zuma is virtually assured of securing the post, having been nominated by the ANC, which controls 66 percent of the parliamentary seats. The president’s inauguration is set to take place on May 9.

In corporate news, Sappi Ltd., the world’s largest maker of glossy paper, will report second-quarter earnings tomorrow, while Nedbank Group Ltd. is due to publish first-quarter profit on May 7.

Gold Fields Ltd., the world’s fourth-largest producer of the metal, and Harmony Gold Mining Co., Africa’s third-biggest gold producer, will publish third-quarter earnings this week. The gold price has gained 4.5 percent in the first three months of the year.

Markets

Last week, the benchmark FTSE/JSE Africa All Share Index added 2 percent, snapping three consecutive weeks of declines and paring its drop this month to 0.1 percent.

Government bonds fell in the week, with the yield on the R157 bond, due September 2015, adding 18 basis points, or 0.18 percentage point, to 8.12 percent. Yields move inversely to bond prices.

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