JOHANNESBURG - The rand weakened during Thursday’s European trading session, again breaching R14/$ after dropping below that phycological threshold earlier the week according to NKC Research.
While marginally better than market expectations, the latest manufacturing sector figures would have weighed on the local unit as they reflect a sector still struggling to gain traction. In addition, the latest mining figures came in much worse than market expectations, which would have put further depreciatory pressure on the South African currency.
At the close of local trade, the rand quoted 0.5 percent weaker at R13.98/$, after trading in range of R13.86/$ - R14.04/$. The rand traded flat overnight. Expected range today R13.90/$ - R14.10/$.
South African bourse
The JSE All Share (-0.4 percent) ended lower yesterday, dragged by losses in precious metal mining, general industrial and listed property shares, while gains in consumer and telecoms shares mitigated these losses. In the overall emerging market sphere, the MSCI Emerging Market Index (0.8 percent) traded lower.
In local news, Allied Electronics (+4.2 percent) announced that it expects its headline earnings for the financial year ending in February to rise by between 49 percent and 62 percent. Meanwhile, Barloworld (-2.2 percent) said it intends to acquire an asset which will grow its equipment division.
Brent crude oil
The Brent oil price traded lower yesterday, following some reports that Opec could raise production if prices keep rising. At the close of local trade, benchmark Brent crude futures quoted 0.2 percent lower at $71.32pb. Crude prices recouped some further overnight losses early this morning.
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