THE rand extended gains at midday on Tuesday, with a broad recovery in equity markets outweighing the weak domestic gross domestic product (GDP).

The domestic unit, which hit record lows to the dollar on Monday, just above the R14 mark, benefited the all share index, which was more than 2% firmer in line with European markets.

Bidvest Bank chief currency dealer Ion de Vleeschauwer still remained cautious about the rand, adding that “SA is one step closer to technical recession”.

Economic growth decreased by a seasonally adjusted and annualised rate of 1.3% in the second quarter compared with an increase of 1.3% in the first quarter of this year, according to Stats SA data.

At 11.51am the rand was at R13.0866 against the dollar from a previous close of R13.2330.

Against the euro the rand was at R15.0964 from a previous close of R15.3721. Against the pound‚ the rand was at R20.6913 from R20.8719.

The euro was at $1.1535 from $1.1620 previously.

PZ Cussons Nigeria says full year pretax profit falls

PZ Cussons Nigeria said on Monday its full year pretax profit fell 5.6 percent to 6.55 billion naira ($33 million) versus the previous year.

Revenue rose to 73.12 billion naira from 72.90 billion naira a year earlier in the year ended May 31, the local unit of British soap and shampoo maker PZ Cussons said in a statement.

The Nigerian unit said it will pay a dividend of 0.61 naira per share to shareholders on its book by Sept. 31, unchanged from last year.