File image: IOL
File image: IOL

WATCH: Rand trades flat overnight

By Compiled by Dhivana Rajgopaul Time of article published Sep 10, 2019

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JOHANNESBURG - The local currency continued to benefit from some positive sentiment during the early stages of this week, trending around levels previously observed in early August according to NKC Research. 

The rand continues to reflect global risk sentiment, with developments regarding Sino-US trade talks in particular driving volatility. External developments aside, domestic data releases this week hold some downside risk. More specifically, today will see the release of manufacturing figures for July, with the latter no longer going to enjoy favourable base effects given the dismal Q1 showing. In addition, recent data releases suggest that Wednesday’s business confidence index will not make for pleasant reading. At the close of local trade, the rand quoted 0.34 percent stronger at R14.73/$, after trading in range of R14.67/$ - R14.81/$. The rand traded flat overnight. Expected range today R14.60/$ - R14.95/$.

South African bourse

The JSE All Share (-0.12 percent) ended lower yesterday, dragged by losses in large gold mining (-5.01 percent) and telecommunications (-1.87 percent) shares. In local news, MTN (-2.72 percent) shares traded in the red after the local telecom company was fined for tripling the price of its WhatsApp data bundles in 2018. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.26 percent) traded higher.

Brent crude oil

The Brent oil price advanced yesterday after Saudi Arabia’s new energy minister eased concerns when he said that the country would continue to limit crude output to support prices. At the close of local trade, benchmark Brent crude futures quoted 0.68 percent higher at $62.52pb. Crude prices traded firmer during Asian trade this morning.

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