JOHANNESBURG - The South African rand started yesterday’s trading session on the backfoot. Recent rand weakness is attributed to the dragging effect that the troubled Turkish lira has had on emerging market risk appetite, while the local unit also endured some profit taking after recent gains according to NKC Research.
Yesterday also saw President Ramaphosa attempting to attract foreign investors by making some positive comments at the Financial Times Africa Summit, stating that the country is open to private participation, including openness to outside investment in ailing state-owned SAA. At the close of local trade, the rand quoted 0.29 percent weaker at R14.79/$, after trading in a narrow range. The rand traded flat overnight. Expected range today R14.70/$ - R14.90/$.
South African bourse
The JSE All Share (-0.57 percent) tracked European stocks lower yesterday, as doubts emerged over the partial China-US trade agreement. In the absence of any major local company news, large gold mining stocks (+1.15 percent) received directional guidance from a firmer gold price. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.58 percent) traded higher.
Brent crude oil
The Brent oil price surrendered the previous session gains, dipping below key levels after China appeared less convinced about the partial trade deal. At the close of local trade, benchmark Brent crude futures quoted 1.94 percent lower at $59.09pb. Crude prices traded softer during Asian trade this morning.