File image: IOL
File image: IOL

WATCH: Rand trades flat overnight

By Compiled by Dhivana Rajgopaul Time of article published Mar 11, 2020

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JOHANNESBURG - The South African currency staged a short-lived comeback as the wave of risk aversion receded to lift risk assets yesterday, sheltering the local unit from reflecting the impact of an unexpected escalation in power-shedding according to NKC Research. 

Sentiment was partly buoyed by expectations for a broad spectrum of easing measures to dim the pain inflicted by bearish shocks. In this regard, we anticipate that the FOMC will opt to cut rates by an additional 50 bps at its meeting on March 18, following a 50-bps emergency rate cut last week. At the close of local trade, the rand quoted 1.20 percent weaker at R16.05/$, after trading in range of R15.76/$ - R16.11/$. The rand traded flat overnight. Expected range today R15.80/$ - R16.15/$.

South African bourse

The JSE All Share (+1.32 percent) joined the rebound in global equity markets yesterday, as investors shopped for cheap stocks. In a victory for #DataMustFall, the Competition Commission announced yesterday that Vodacom (+1.38 percent) will slash mobile data prices by at least 30 percent from April 1. FirstRand (+4.52 percent) stock rose after reporting a 5 percent rise in normalised earnings for the six months to December 2019, outclassing some of its main rivals. In the overall emerging market sphere, the MSCI Emerging Market Index (+1.75 percent) traded higher.

Brent crude oil

The Brent oil price remained flat near multi-year lows during yesterday’s session as markets assessed the price war between Saudi Arabia and Russia. At the close of local trade, benchmark Brent crude futures quoted 2.57 percent lower at $36.36pb. Crude prices were little changed overnight.

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