File image: IOL
File image: IOL

JOHANNESBURG - The rand remained subdued during the European session on Thursday as sentiment was hit by geopolitical developments and uncertainty regarding the outlook for global trade according to NKC Research. 

An attack on oil tankers in the Gulf of Oman, raised concerns over disruptions to crude flow through a key global shipping route. Meanwhile, weak domestic data releases weighed on the local unit, while an investigation into President Ramaphosa’s campaign donations for the 2017 ANC leadership race unnerved investors. At the close of local trade, the rand quoted 0.2 percent stronger at R14.88/$, after trading in range of R14.82/$ - R14.93/$. The rand traded flat overnight. Expected range today R14.75/$ - R15.05/$.

South African bourse

The JSE All Share (+0.1 percent) tracked European markets higher yesterday, which received a boost from rising oil prices, but lost its way as the local session drew to a close. Large telecom (-3.0 percent) and retail (-2.0 percent) shares were among the day’s biggest laggards. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.4 percent) traded lower.

Brent crude oil

The Brent oil price shot up yesterday, following the news of an attack on two oil tankers in the Gulf of Oman, through which roughly 20 percent of the world’s oil passes. At the close of local trade, benchmark Brent crude futures quoted 1.7 percent higher at $61.77pb. Crude prices ticked lower in late trade yesterday but performed steady overnight.

Like the Business Report on Facebook by clicking here or follow us on Twitter @Busrep.

You can also follow the Business Report on Instagram here