South Africa’s rand slipped slightly on Monday after strong gains last week, as investors waited for direction from this week’s Group of 20 summit, according to blue-chip index.

Local stocks and government bonds also weakened.

At 1820 GMT the rand was around 0.4% weaker than its previous close at 14.3725 per U.S. dollar after gaining more than 3% last week.

U.S.-China trade tensions have market participants eyeing the leaders of the world’s two largest economies and their expected meeting at the upcoming G20 summit in Japan on Friday.

In the absence of market-moving data releases, the rand tends to take its cue from global market developments.

China is South Africa’s largest trading partner, so any impact on its economy from the trade tensions affects sentiment towards local assets.

The Johannesburg Stock Exchange’s benchmark Top-40 Index dipped 0.27% to 52,761 points, while the broader All-Share Index closed 0.31% lower at 58,756 points.

Among the biggest fallers on the blue-chip index, Sappi fell 4.55% to 55.56 rand and Aspen Pharmacare fell 3.32% to 101.00 rand.

Curbing further losses were bullion stocks, which gained on the back of a higher spot gold price, with AngloGold Ashanti up 3.54% to 250.55 rand and Gold Fields 2.30% higher at 78.86 rand.

The yield on the benchmark government bond due in 2026 rose 5 basis points to 8.17%, reflecting weaker prices.

#Reuters