Photo: Reuters
Photo: Reuters

WATCH: Rand trades steady overnight

By Compiled by Dhivana Rajgopaul Time of article published Feb 3, 2020

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JOHANNESBURG - The South African currency was pressured by risk-off sentiment as concerns surrounding the coronavirus compounded domestic woes according to NKC Research.

The IMF’s warning of a prolonged subdued growth outlook lingered while the power parastatal Eskom switched off the lights for rotational power shedding again on Friday. On the global front, there was little reaction to the busy data calendar. China’s manufacturing PMI was in line with expectations. Mixed Japanese data included stronger-than-expected industrial production and a lower-than-expected jobless rate. At the close of local trade, teh rand quoted 0.95 percent weaker at R14.93/$, after trading in range of R14.72/$ - R14.93/$. The rand traded steady overnight. Expected range today R14.90/$ - R15.10/$.

South African bourse

The JSE All Share (-0.90 percent) ended lower on Friday dragged by losses in large financial (-1.72 percent) and industrial (-1.49 percent) stocks. In local news, Sasol was among the day’s biggest laggards, dropping 6.76 percent Meanwhile, Tongaat Hulett will resume trading on the local bourse today after the JSE suspended the 127-year-old sugar giant on June 10, 2019 due to accounting irregularities. In the overall emerging market sphere, the MSCI Emerging Market Index (-0.97 percent) traded lower.

Brent crude oil

The Brent oil price sank yet again last week, as growing travel restrictions related to the coronavirus hold serious implications for oil demand in an already-oversupplied market. At the close of local trade, benchmark Brent crude futures quoted 1.74 percent lower at $58.21pb. Crude prices fell further during Asian trade this morning.

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