JSE on track for second week of gains on Friday

The JSE is on track for a second-consecutive week of gains on Friday, boosted this week by the prospects of a Brexit deal, but faces subdued Asian markets.

Chinese GDP for the third-quarter disappointed earlier, growing 6%, its lowest growth rate since the measure was adopted in 1992. China’s economy had performed worse in 1990, when it was reeling from the 1989 crackdown on students in Tiananmen Square, reported Dow Jones Newswires.

The prospect of a Brexit deal has boosted markets this week, however, while the approval by cabinet of an integrated resource generation plan has also provided some support for the rand.

At 6.30am the rand was 0.13% weaker at R14.8524/$.

Shanghai’s Composite was down 0.59%, while most other Asian markets were flat.

Gold and platinum were flat at $1,491.80/oz and $885.21/oz respectively. Brent crude was 0.47% lower at $59.57 a barrel.

The resumption of load-shedding this week, however, had sent the rand above R15/$ earlier in the week. Recent gains by the rand are likely to be short lived, said Peregrine Treasury Solutions corporate treasury manager Bianca Botes in a note.

“Load-shedding is estimated to be costing the economy in the region of R2bn a day and poses a significant threat to the local GDP. A downward adjustment in the GDP forecast to 0.8% could now be an overestimation, depending on the duration and intensity of rolling blackouts throughout the country,” said Botes.

Focus now shifts to a vote on the proposed Brexit deal in the UK parliament on Saturday, while locally the corporate and economic calendar is bare on Friday.

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