JOHANNESBURG - The rand extended losses on Monday, reaching its weakest level in 11 months, as domestic political uncertainty compounded global risk-off sentiment entrenched in US-Sino trade uncertainty according to NKC Research.
Markets remained cautious after US President Trump indicated on Friday that a round of trade talks scheduled for September may not proceed. At the close of local trade, the rand quoted 0.9 percent weaker at R15.35/$, after trading in range of R15.22/$ - R15.46/$. The rand traded steady overnight. Expected range today R15.10/$ - R15.40/$.
South African bourse
The JSE All Share (-0.29 percent) ended in the red yesterday, dragged lower by heavy losses in healthcare and telecom sector shares. The tabling of the controversial National Health Insurance Bill in Parliament last week hit healthcare sector shares such Discovery (-8.4 percent), Aspen (-10.2 percent) and Dis-Chem (-5.8 percent). Meanwhile, the higher gold prices boosted gold mining shares such as Gold Fields (+6.7 percent) and Harmony (+7.1 percent). In the overall emerging market sphere, the MSCI Emerging Market Index (-0.8 percent) traded lower.
Brent crude oil
The Brent oil price traded higher yesterday, despite rising trade war concerns and news of a higher US oil rig count. Meanwhile, Kuwait’s oil minister said the country is committed to reducing its oil output according to the Opec agreement. At the close of local trade, benchmark Brent crude futures quoted 0.6 percent higher at $58.53pb. Crude prices traded slightly weaker during Asian trade this morning.
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