JOHANNESBURG - The South African rand traded on the front foot as South Africa entered level 3 of the phased reopening of the economy, which allows mines and factories to operate at full capacity according to NKC Research.
Uncertainty regarding the reopening of schools – after yet another haphazard appearance by the education minister over the weekend and on Monday – was shrugged off, while the Absa PMI rose to 50.2 in May from 46.1 in April to lend support to the local unit. Meanwhile, there was little reaction to the Chinese PMI figures: the composite PMI held steady at 53.4 in May, while the Caixin China Manufacturing PMI improved to 50.7 from 49.4, compared to a 49.6 median forecast. Administrators for national carrier SAA are set to publish a rescue plan on June 8, although the proposal reportedly calls for further government bailouts. At the close of local trade, the rand quoted 0.15 percent stronger at R17.35/$, after trading in range of R17.34/$ - R17.61/$. The rand traded somewhat firmer overnight. Expected range today R17.20/$ - R17.55/$.
South African bourse
The JSE All Share (+0.88 percent) traded in the black yesterday led by gains in large tech (+2.33 percent) and industrial (+1.24 percent) stocks. In the overall emerging market sphere, the MSCI Emerging Market Index (+2.27 percent) strengthened.
Brent crude oil
The Brent oil price consolidated gains yesterday after it soared in the previous session. At the close of local trade, benchmark Brent crude futures quoted 0.05 percent lower at $37.61pb. Crude prices traded firmer during Asian trade this morning.