* Stocks notch higher after US election
* Rand boosted by weaker dollar
(Update levels and quotes)JOHANNESBURG, Nov 7 (Reuters) - South Africa's rand firmedagainst a weaker dollar on Wednesday after U.S. midtermelections split Congress, lowering the chance of any major U.S.fiscal policy boost soon.Stocks recovered marginally from a sell-off ahead of theelections.At 1505 GMT, the rand traded 1.04 percent strongerat 13.9725 per dollar, having earlier hit a session best of13.8850.The dollar index was down 0.43 percent."After U.S. election results showed a split between theRepublicans and Democrats, which will limit Trump's powers, thedollar has taken cue and weakened," said Afrifocus Securitiesportfolio manager Cheslyn Francis
Domestic data also helped the rand.Business confidence rose for a second month in October,bolstered by higher import volumes, vehicle sales and retailsales, a survey by the South African Chamber of Commerce andIndustry (SACCI) showed. "The business confidence rising another month, showingbusiness transactions are brisk, provided positive headwind forthe rand and also fuelled stocks," Francis said.
The rand has been on the back foot since it was announced inSeptember that the economy had entered a recession.Bonds firmed, with the yield on the government's 10-yearpaper down 7 basis points to 9.070 percent.On the bourse, the all-share index rose 0.46percent to 54,700 points while the blue chip top 40 index was 0.36 percent higher at 48,295 points.Banks were 2.3 percent higher. Retailer WoolworthsHoldings rose 5.68 percent to 56.21 rand while Mr Price was up 4.92 percent to 248.76 rand.
"The market is doing much better after a cautious sell-offyesterday," said analyst Ryan Woods."After the results of the U.S. midterm elections, we'restarting to see more market certainty."Telecoms firm Vodacom was down 0.39 percent afterit said it had entered into a roaming and facilities leasingagreement with Telkom , South Africa's biggestfixed-line operator. (Reporting by Nomvelo Chalumbira and Patricia AruoEditing by Joe Brock and Robin Pomeroy)
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