JOHANNESBURG - The South African currency began Friday’s trading session on a firmer footing in tandem with improving global risk sentiment, buoyed by hopes of China stimulus according to NKC Research.
Optimism sprouted from an announcement by China’s state planner that it will roll out a plan to lift disposable income in the period through 2020, after data last week signalled warning signs that US-Sino trade tensions are spurring consumer caution. However, a bullish dollar on the one hand and idiosyncratic vulnerabilities on the other, saw these early movements come undone as the rand sank lower. At the close of local trade, the rand quoted 0.25 percent weaker at R15.24/$, after trading in range of R15.16/$ - R15.30/$. The rand traded marginally stronger this morning. Expected range today R15.10/$ - R15.40/$.
South African bourse
The JSE All Share (+0.06 percent) ended marginally higher on Friday after sustaining heavy losses throughout the week. In local news, Sasol’s (-4.73 percent) share price wobbled after the firm announced the delay of its annual financial results by one month, to give its auditors more time to consider a report on what went wrong at its Lake Charles Chemicals Project in the US. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.70 percent) traded higher.
Brent crude oil
The Brent oil price aimed higher in early European trade on Friday, but gains were reversed after Opec trimmed its outlook for crude demand for the rest of this year. At the close of local trade, benchmark Brent crude futures quoted 0.47 percent lower at $58.75pb. Crude traded firmer during Asian trade.