Market News

BY Sfundo Parakozov and Bhargav Acharya

JOHANNESBURG, May 22 (Reuters) – South Africa’s rand was steady on Thursday, as markets tried to digest U.S. President Donald Trump’s Oval Office ambush of South African leader Cyril Ramaphosa, which overshadowed the country’s budget presentation.

At 0746 GMT, the rand traded at 17.965 against the dollar, not far from its previous close on Wednesday and near a five-month high.

South African Finance Minister Enoch Godongwana tabled the 2025 budget for the third time on Wednesday, after scrapping plans to raise value-added-tax, the most contentious element in his two previous attempts.

The market focus quickly shifted to Ramaphosa’s meeting with Trump, however, which the South African leader had hoped would help reset strained ties between the two nations after Trump suspended aid to South Africa earlier this year, citing its land reform policy and its genocide case against Israel.

However, Trump confronted Ramaphosa in the White House with false allegations of mass killings of white people and land seizure, which the South African leader pushed back against.

Following a bilateral meeting with Trump, Ramaphosa told reporters that the two countries had agreed to discuss critical minerals in South Africa, but did not provide details.

A trade and investment proposal was also submitted, which includes buying liquefied natural gas from the United States, his trade minister said.

“One hopes that more constructive talks around trade and bilateral relations took place behind closed doors, but as yet, there have been no updates,” said Andre Cilliers, currency strategist at TreasuryONE.

On the stock market, the Top-40 index was down about 0.7%.

South Africa’s benchmark 2030 government bond was weaker, with the yield up 2 basis points to 8.90%.

(Reporting by Sfundo Parakozov and Bhargav Acharya; Editing by Joe Bavier)