Photo: Reuters
Photo: Reuters

WATCH: Rand trades on a firmer footing

By Compiled by Dhivana Rajgopaul Time of article published May 5, 2020

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JOHANNESBURG - The South African currency shrugged off a slow start to the session, overturning losses as local bonds drew attention according to NKC Research. 

South Africa, which had a 0.44 percent weighting in the World Government Bond Index (WGBI), was officially ejected from the index on April 30. Outflows from South African bonds topped R60 billion ($3.2 billion) in the four months to end-April as foreign investors trimmed exposure to 33 percent of outstanding debt. Selling pressure associated with the ejection eased to allow the local unit breathing room. At theclose of local trade, the rand quoted 1.28 percent stronger at R18.67/$, after trading in range of R18.60/$ - R18.95/$. The rand extended gains this morning. Expected range today R18.15/$ - R18.60/$.

South African bourse

The JSE All Share (-2.28 percent) ended lower yesterday, dragged by losses in large financial (-4.80 percent) and industrial (-3.82 percent) stocks. In the overall emerging market sphere, the MSCI Emerging Market Index (-3.14 percent) traded sharply lower because of weak PMI data and a flare-up in tensions between the US and China.

Brent crude oil

The Brent oil price oscillated on mixed factors yesterday as lockdowns eased and demand was threatened by rising tensions between China and the US. At the close of local trade, benchmark Brent crude futures quoted 1.39 percent firmer at $26.31pb. Crude prices traded firmer during Asian trade this morning.

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