File image: IOL
File image: IOL

WATCH: Rand claws back losses overnight

By Compiled by Dhivana Rajgopaul Time of article published Nov 21, 2019

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JOHANNESBURG - The South African currency traded on a softer footing as US-Sino trade tensions weighed on risk appetite while a below-expected inflation print introduced the risk of a Sarb rate cut on Thursday according to NKC Research. 

Inflation slowed to a multi-year low of 3.7 percent y-o-y in October, which opened the door to a rate cut. We retain our forecast for the repo rate to be kept at 6.5 percent on Thursday, on par with the majority of forecasters. At the close of local trade, the rand quoted 0.05 percent weaker at R14.78/$, after trading in range of R14.77/$ - R14.85/$. The rand clawed back losses overnight. Expected range today R14.65/$ - R14.85/$.

South African bourse

The JSE All Share (-0.10 percent) ended lower yesterday, in step with global stock indices as global tensions flared up. In local new, the Lewis Group (+12.27 percent) reported a 6.1 percent rise in its half-year revenue ended 30 September 2019, on the back of strong sales growth. The local retailer said that its headline earnings per share (Heps) for the period came in at 215c per share, up 18.9 percent from the 180.8c per share in 2018. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.49 percent) traded lower.

Brent crude oil

The Brent oil price surprised as it traded firmer yesterday, after data reflected a smaller-than-expected build in US crude stockpiles. At the close of local trade, benchmark Brent crude futures quoted 1.14 percent higher at $61.45pb. Crude prices traded steady during Asian trade this morning. 

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