September 30, 2016 / 3:58 PM / 3 years ago

UPDATE 1-South Africa's rand lifted by bond issuance, stocks falter

(Updates with closing prices)

JOHANNESBURG, Sept 30 (Reuters) - South Africa’s rand was lifted on Friday after the Treasury said it issued a pair of new dollar bonds worth $3 billion, while stocks faltered as Deutsche Bank’s woes tipped global share markets into a tailspin.

The rand was almost 1 percent firmer at 1530 GMT, fetching 13.75/dlr, after the announcement of the bond issuances, which were more than 2.5 times oversubscribed

“The strong subscription shows confidence in the medium/long term economic prospects. Some of the major structural barriers to growth - such as power supply - are being slowly sorted, and the Zuma administration will end in 2019,” said Augustine Booth-Clibborn, an analyst at Africa Risk Consulting.

The yield for the benchmark government bond due in 2026 was down 2 basis points to 8.66 percent.

Stocks fell in line with European peers knocked by the Deutsche Bank fall out.

Hit by a string of fines for wrongdoing and a sharp fall in its revenues, Germany’s biggest lender saw its shares drop as much as 9 percent and to below 10 euros for the first time before clawing back roughly half that lost ground.

Banks were among the blue-chip decliners in Johannesburg, with Standard bank losing 3.7 percent and Nedbank dropping 2.05 percent.

Johannesburg’s benchmark Top-40 index ended 1.45 percent lower at 45,425.59 while the wider All-share index shed 1.42 percent to end at 51.949.83, reversing two consecutive sessions of gains. (Reporting by Ed Stoddard; Editing by Angus MacSwan)

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