JOHANNESBURG - The rand retreated as domestic woes conspired with ongoing global fears surrounding the coronavirus outbreak to punish the risk-sensitive unit according to NKC Research.
Embattled parastatals Eskom and South African Airways dominated local headlines as the power utility announced the resumption of Stage 2 load-shedding on Thursday evening, with a high risk that power rotation will carry over to the weekend. In turn, the national carrier warned that it would “cancel and consolidate selected flights” with low demand. At the close of local trade, the rand quoted 0.51 percent weaker at R14.74/$, after trading in range of R14.61/$ - R14.85/$. The rand regained momentum in after-hours trading yesterday right through to this morning’s Asian session. Expected range today R14.60/$ - R14.90/$.
South African bourse
The JSE All Share (+0.39 percent) ended higher yesterday, led by gains in large gold (+4.54 percent) and platinum (+3.49 percent) mining shares. In the overall emerging market sphere, the MSCI Emerging Market Index (-2.25 percent) fell amid weak global sentiment.
Brent crude oil
The Brent oil price continued to slide during yesterday’s session as the coronavirus that started in China continues to spread – holding adverse implications for global travel. At the close of local trade, benchmark Brent crude futures quoted 0.56 percent lower at $58.89pb. Crude prices traded sharply higher during Asian trade this morning as investors took solace in the fact that Chinese manufacturing data met market consensus in January.