JOHANNESBURG - The rand traded stronger against the US dollar during European trade yesterday according to NKC Research.
Although the South African currency managed to claw back losses, it failed to fully benefit from broad-based greenback weakness as domestic equities remain under pressure amid local growth concerns. At the close of local trade, the rand quoted 1.1 percent stronger at R14.34/$, after trading in range of R14.34/$ - R14.53/$. The rand was unchanged overnight. Expected range today R14.20/$ - R14.40/$. Looking ahead, the Sarb is scheduled to meet on Thursday, we expect a hold on interest rates although the announcement may carry a hawkish tone. South Africa's credit risk will grab attention as Moody's is set to announce its rating decision on Friday.
The JSE All Share (-1.3 percent) ended lower across the board yesterday, dragged by large technology (-1.6 percent) and property (-2.4 percent) shares. In the overall emerging market sphere, the MSCI Emerging Market Index (-1.1 percent) traded lower. In local news, Naspers (-1.6 percent) announced that it intends to float a portion of its e-commerce ventures on Euronext in Amsterdam, as it aims to attract more international investment.
The Brent oil price traded lower yesterday, as a softer global economic outlook outweighed Opec-led production cuts and lower Iran and Venezuelan crude output. At the close of local trade, benchmark Brent crude futures quoted 0.1 percent higher at $66.78pb. Crude prices ticked firmer overnight.