File image: IOL
File image: IOL

WATCH: Rand remains on the front foot against the dollar

By Compiled by Dhivana Rajgopaul Time of article published Sep 11, 2019

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JOHANNESBURG - The South African currency remained on the front foot as ratings reprieve optimism outweighed weak China factory data according to NKC Research.

Global risk appetite was curbed by a poor showing of China’s factory-gate prices for August, although the rand bucked the trend to trade firmer ahead of the local manufacturing data release, which was broadly in line with the consensus estimate. Markets are turning attention to monetary stimulus from the ECB (tomorrow) and the US (next week). At the close of local trade, the rand quoted 0.6 percent stronger at R14.67/$, after trading in range of R14.67/$ - R14.77/$. The rand traded firmer overnight. Expected range today R14.55/$ - R14.75/$.

South African bourse

The JSE All Share (-0.34 percent) suffered a drubbing as large gold (-1.64 percent) and platinum (-4.43 percent) mining shares disappointed. The share prices of Anglo American Platinum (-3.66 percent) and Sibanye-Stillwater (-2.66 percent) traded firmly in the red yesterday, as wage talks with the Association of Mineworkers and Construction Union (Amcu) drag on after the union’s general secretary declared a wage dispute with the aforementioned mining houses. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.24 percent) traded lower.

Brent crude oil

The Brent oil price extended gains, scaling to its highest level in nearly six weeks, on the back of hopes that Opec will honour its commitment to curb crude output in support of prices. At the close of local trade, benchmark Brent crude futures quoted 1.15 percent higher at $63.54pb. Crude prices struggled to gain traction during Asian trade this morning.

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