* Market fears government not in control as strikes spread
* Long-dated bonds hit by long-term inflation worries
By Vuyani Ndaba
JOHANNESBURG, Oct 5 (Reuters) – South Africa’s rand tumbled
against the dollar on Friday to near a 3-1/2 year low and bonds
weakened after Anglo American Platinum said it had
dismissed around 12,000 workers who went on an illegal strike.
The rand weakened almost 2 percent to 8.6727
against the dollar at 1404 GMT, near the 8.71 level last seen in
May 2009, as labour unrest intensified across major industries
in Africa’s biggest economy.
“It would appear the news that the 12,000 strikers had been
fired had not been well received by the markets,” William Van
Rijn, a trader at Nedbank, said.
More than 75,000 miners, or 15 percent of the workforce have
gone out on wildcat strikes, which were spreading beyond the
mining sector. A strike by more than 20,000
truckers has caused some petrol stations to run dry and delayed
product deliveries nationwide.
Investors feared the government was not in control of the
situation as selling swept across the foreign exchange and fixed
income markets, with some traders already touting 9.00 rand
against the dollar.
“We’ve got no leadership in this country to arrest the
strikes. The market is going to make them pay.” Ian Scott, a
portfolio manager at Stanlib, said.
Continued…
