File image: IOL
File image: IOL

WATCH: Rand drifts weaker overnight

By Dhivana Rajgopaul Time of article published Oct 29, 2019

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JOHANNESBURG - The South African currency rode the tailwinds of improving risk sentiment in the wake of a Brexit deadline extension, optimism on US-Sino trade deal progress and cautious anticipation of this week’s budgetary address according to NKC Research.

Tomorrow’s medium-term budget speech will describe the policy framework for the 2020 Budget and will also indicate any adjustments that may be recommended to Parliament in respect of the current year’s expenditure plans. At the close of local trade, the rand quoted 0.50 percent stronger at R14.54/$, after trading in range of R14.52/$ - R14.65/$. The rand drifted weaker overnight. Expected range today R14.50/$ - R14.75/$.

South African bourse

The JSE All Share (+1.12 percent) ended higher yesterday – in step with global stock markets – carried by large resource (+1.51 percent) and financial (+1.50 percent) shares. In local news, Sasol (+11.78 percent) received a much-needed boost yesterday following news that the company’s joint Chief Executives are leaving. The local petrochemicals group have been hit by delays and cost overruns at its multibillion Lake Charles Chemicals project in the US. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.69 percent) traded higher.

Brent crude oil

The Brent oil price whipsawed yesterday, bolstered by hopes of a US-China trade pact. But soft Chinese industrial data capped gains, while building US inventory pulled prices lower in afternoon trading. At the close of local trade, benchmark Brent crude futures quoted 0.19 percent lower at $61.79pb. Crude prices continued lower during Asian trade this morning. 

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