WATCH: Rand trades firner this morning
JOHANNESBURG - The South African currency took a breather as risk aversion ebbed while the State of the Nation Address (Sona) lifted sentiment on hopes for an escape from the economic quagmire according to NKC Research.
Albeit short of details or timelines, the address touched on salient issues including a dire need to augment power supply to alleviate pressure on Eskom. However, Fitch Ratings dismissed the Sona as underwhelming; while the address highlighted challenges to the credit outlook, promised progress is overshadowed by partial detail on key policy areas, including land reform. The rand is set to brace for a bumpy road ahead this quarter as we expect that a disappointing budget will prelude a downgrade by Moody’s. At the close of local trade, the rand quoted 0.47 percent stronger at R14.85/$. The rand traded firmer this morning. Expected range today R14.75/$ - R15.00/$.
South African bourse
The JSE All Share (+0.05 percent) ended little changed on Friday, in step with mixed global equity markets. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.0 percent) traded marginally higher.
Brent crude oil
The Brent oil price banked its first weekly gain in six weeks, amid expectations that the coronavirus has reached a crest. At the close of local trade, benchmark Brent crude futures quoted 1.58 percent higher at $57.28pb. Crude prices traded steady during Asian trade this morning.
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