WATCH: Rand trades slightly stronger overnight
JOHANNESBURG - The rand was pressured by domestic energy deficit woes although a local inflation release offered much-needed reprieve according to NKC Research.
Inflation slowed further to reach a new multi-year low, boosting carry appeal as the real interest differential widened while the hawkish central bank is set to maintain a conservative stance throughout 2020. Meanwhile, ministers Gordhan and Mantashe are scheduled to present proposals to close the energy gap to Cabinet on Friday. At the close of local trade, the rand quoted 0.3 percent stronger at R14.76/$, after trading in range of R14.74/$ - R14.82/$. The rand traded slightly stronger overnight. Expected range today R14.65/$ - R14.85/$.
South African bourse
The JSE All Share (+0.8 percent) ended higher yesterday, led by gains in industrial and basic material sector industry shares. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.8 percent) traded higher. In local news, Harmony Gold (+2.6 percent) announced the resumption of shifts at its nine South African underground mines. Monday’s night shift and Tuesday’s day shift at all these mines were cancelled in response to an urgent request from power utility Eskom for power usage to be reduced immediately.
Brent crude oil
The Brent oil price traded higher yesterday following Opec’s monthly report which suggested there will be a small supply deficit in the global oil market in 2020. At the close of local trade, the Brent oil price quoted 0.2 percent higher at $64.1pb. Crude prices traded lower during Asian trade this morning.
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