JOHANNESBURG - The rand weakened somewhat on Tuesday, mostly trending just above the R14/$ threshold according to NKC Research.
The rand felt some pressure following another warning by Moody’s yesterday that growing government debt linked to bailouts of state-owned enterprises would continue to pressure the country’s investment grade status. At the close of local trade, the rand quoted 0.15 percent weaker at R14.08/$, after trading in range of R14.01/$ - R14.12/$. The rand traded stronger overnight thanks to robust Chinese data which boosted risk sentiment. Expected range today R13.90/$ - R14.10/$.
South African bourse
The JSE All Share (+1.1 percent) rallied to its best level this year yesterday thanks to broad-based gains, but telecom and metals mining companies were among the top performers. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.7 percent) traded higher. In local news, Technology group EOH’s (+55.2 percent) shares surged higher after it said it would raise R1bn through asset sales to reduce debt. Mpact’s (-2.1 percent) shares fell after the Competition Commission said the packaging group had colluded to fix prices.
Brent crude oil
The Brent oil price traded higher yesterday amid continued pressure on global oil supplies. Despite US shale output expected to reach a record high in May, falling Iranian and Venezuelan output as well as fighting in Libya continues to tighten the oil market. At the close of local trade, benchmark Brent crude futures quoted 0.35 percent higher at $71.18pb. The Brent oil price bounced back to nearly $72pb during Asian trade this morning.
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