JOHANNESBURG - The rand traded stronger against the US dollar during yesterday’s European trading session according to NKC Research.
The South African currency was one of the top-performing emerging market currencies as the recent sharp drop in crude oil prices improved the country’s inflation outlook and positive (albeit meagre) Q3 retail sales raised the probability that the country will escape a technical recession in this quarter. At the close of local trade, the rand quoted 1 percent stronger at R14.28/$, after trading in the range of R14.27/$ - R14.46/$. The rand traded little changed overnight. Expected range today R14.15/$ - R14.45/$.
South African bourse
The JSE All Share (-0.6 percent) ended lower again yesterday dragged by losses in large mining (-2 percent) and industrial (-1.4 percent) shares. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.22 percent) traded higher/lower. In local news, MTN (+1.1 percent) shares were buoyed by reports that could see Nigerian authorities slashing the $10.1bn sum, which it says the telecoms company owes for repatriating profits illegally.
Brent crude oil
The Brent oil price traded higher yesterday, due to expectations of a possible cut in crude supply by Opec and allied oil producers. At the close of local trade, the Brent oil price quoted 3.1 percent higher at $67.18/pb. Crude prices traded lower during Asian trade this morning.
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