South African stocks, government bonds and the rand currency strengthened in early trade on Wednesday, 6 May 2026 after US President Donald Trump signalled a possible peace deal with Iran, lifting global risk appetite and boosting demand for emerging market assets.



- At 0802 GMT the rand traded at 16.43 against the dollar, up about 1.5% from Tuesday's close.


- Trump said that "great progress" had been made towards a comprehensive agreement with Iran and said he would pause an operation to escort ships through the Strait of Hormuz.


- The US dollar was last down about 0.3% against a basket of currencies, with oil prices also falling to trade below $110 a barrel on expectations that bottled-up supply
from the Middle East could resume.


- South Africa is a net importer of petroleum products and heavily exposed to fluctuations in global energy prices.


- "The risk at the moment is asymmetric, and the rand is vulnerable to further adverse developments that could hurt the country's terms of trade
and tilt cross-border flows against the currency," ETM Analytics said in a research note.


- A business survey showed on Wednesday that South Africa's private sector expanded at its fastest
in nearly four years in April.


- On the Johannesburg Stock Exchange, the Top-40 index was up 2.5%.


- South Africa's benchmark 2035 government bond also firmed in early deals, with the yield down 14 basis points at 8.71%.

 

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