File image: IOL
File image: IOL

WATCH: Rand falls due to Cabinet uncertainty

By Compiled by Dhivana Rajgopaul Time of article published May 29, 2019

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JOHANNESBURG - The rand fell yesterday as Cabinet uncertainty remained at the forefront of domestic concerns according to NKC Research. 

The local unit touched a two-month low against the greenback as the delayed Cabinet appointments and lack of clarity regarding the leadership outlook for embattled parastatal Eskom coincided with ongoing global trade concerns. Meanwhile, traders were somewhat cautious ahead of a busy US economic calendar, as market watchers continue to gauge policy direction going forward. At the close of local trade, the rand quoted 1.9 percent weaker at R14.71/$, after trading in range of R14.42/$ - R14.74/$. the rand was flat overnight. Expected range today R14.55/$ - R14.85/$.

South African bourse

The JSE All Share (-0.1 percent) ended lower yesterday after the weaker rand battered the financial sector, specifically bank (-2.5 percent) shares. Large telecommunications (-2.5 percent) stocks also weighed on the local bourse. In the emerging market sphere, the MSCI Emerging Market Index (-0.1 percent) dropped.

Brent crude oil

The Brent oil price traded weaker yesterday, dragged by concerns that the trade war will dent demand for crude. At the close of local trade, benchmark Brent crude futures quoted 0.7 percent lower at $69.74pb. Crude prices traded weaker during Asian trade this morning. 

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