File image: IOL
File image: IOL

WATCH: Rand reacts negatively to Eskom's need for more financial support

By Compiled by Dhivana Rajgopaul Time of article published Apr 5, 2019

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JOHANNESBURG - The rand whipsawed during yesterday’ European session as warning lights flashed in the wake of Eskom’s debt dilemma, although some global trade optimism tempered souring risk sentiment according to NKC Research. 

The South African unit reacted negatively to news that embattled parastatal Eskom will require more financial support, while the greenback was buoyed by news that weekly US jobless claims dropped to a new half-century low of 202,000. However, the rand clawed back losses later in the session. At the close of local trade, the rand quoted 0.2 percent stronger at R14.11/$, after trading in range of R14.09/$ - R14.22/$. The rand traded little changed overnight. Expected range today R14.00/$ - R14.20/$

South African bourse

The JSE All Share (-0.4 percent) ended lower yesterday dragged by large mining (-1.7 percent) and retail (-1.0 percent) shares. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.1 percent) traded higher. On the local front, retail companies Clicks (-3.4 percent) and Shoprite (-2.7 percent) were among the day’s biggest laggards.

Brent crude oil

The Brent oil price recovered yesterday, spurred along by expectorations of tighter crude supply. At the close of local trade, benchmark Brent crude futures quoted 0.1 percent higher at $69.33pb. Crude prices fell during Asian trade this morning.

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