JOHANNESBURG – The rand weakened to a three-week low against the US dollar during yesterday’s European trading session according to NKC Research.
The South African currency traded weaker, breaching the R14/$ level again, amid fears that the US-China trade war truce in jeopardy after the arrest of Chinese telecoms giant Huawei’s CFO in Canada due to her alleged involvement in violating US sanctions against Iran. On the data front, slightly weaker-than-expected South African current account data also weighed on the rand. At the close of local trade, the rand quoted 1.9 percent weaker at R14.18/$, after trading in the range of R13.84/$ – R14.20/$. The rand traded slightly stronger overnight. Expected range today R13.80/$ – R14.20/$.
South African bourse
The JSE All Share (-1.8 percent) ended lower yesterday dragged by losses across the board. In the overall emerging market sphere, the MSCI Emerging Market Index (-2.4 percent) traded higher/lower. In local news, Steinhoff (-10.1 percent) shares fell sharply after the embattled retailer announced that it would not of publishing 2017 & 2018’s financial statements by the end of January 2019, due to delays in a forensic investigation conducted by PwC. Instead group audited financial statements would now be released by mid-April 2019.
Brent crude oil
The Brent oil price fell yesterday after Opec signalled that it was open to the idea of smaller supply cuts. At the close of local trade, the crude price quoted 2.2 percent lower at $59.79/pb. Crude prices traded flat during Asian trade this morning.
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