Rand trades weaker overnight against the US greenback
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THE rand made further gains on Friday, despite the country waking up to some concerning news on the political front, according to NKC Research.
The holding hostage of two members of the Cabinet and a deputy minister will come as a shock to the ANC-led government facing growing discontent, which is increasingly finding expression in violent protest action.
Last week’s real economy data was a mixed bag but would have disappointed more than surprised. This week we will get an update on price pressures. We maintain our view that inflation will average at the midpoint (4.5 percent) of the target range this year.
At the close of local trade on Friday, the rand quoted 0.93 percent stronger, at R14.62/$, after trading in a range of R14.62/$ to R14.79/$. The rand traded weaker overnight. The expected range of the rand against the dollar today is R14.50/$ to R14.80/$.
South African bourse
The JSE All Share (+0.27 percent) ended higher on Friday as the local bourse benefited from a rise in global risk-on sentiment, after lower US inflation figures and a strong round of earnings boosted sentiment. Gains in technology (+0.96 percent) and industrials (+0.75 percent) countered the losses recorded for financials (-0.33 percent) and resources (-0.12 percent). The share price of Mediclinic rose by 11.39 percent on Friday after the group announced that all of its divisions have returned to pre-pandemic revenue levels.
Brent crude oil
The Brent oil price rose on Friday, trading close to the $85/pb mark. Prices were enhanced by an outlook that there will be a supply deficit over the coming months due to an increase in demand spurred by an easing of coronavirus-related travel restrictions. At the close of local trade, the Brent oil price quoted at $84.7/pb. Crude prices traded higher during Asian trade this morning.