JOHANNESBURG – The rand oscillated on local data releases while an uptick in global risk appetite lent support according to NKC Research.
The GDP data release showed positive growth and an upward revision to the 2017 expansion. However, at 0.8 percent the 2018 average growth rate is below 2017’s revised 1,4 percent growth outcome as well as below South Africa’s estimated potential growth rate – wholly insufficient to address the country’s escalating social challenges. At the close of local trade, the rand quoted 0.6 percent stronger at R14,13/$, after trading in range of R14,12/$ – R14,22/$. The rand slipped overnight. Expected range today R14,00/$ – R14,30/$.
South African bourse
The JSE All Share (-0,8 percent) ended lower yesterday, dragged by losses across the board – large consumer goods (-3,1 percent) shares were among the biggest laggards. In the overall emerging market sphere, the MSCI Emerging Market Index (+0,1 percent) traded higher. In local news, British American Tobacco (-0,2 percent) said an amount of R8,1 billion previously set aside to cover a potential legal defeat will weigh on profit this year, after a Canadian court ruled against the company in class-action lawsuits.
Brent crude oil
The Brent oil price chased the US$66pb mark yesterday, underpinned by Opec-led efforts to tighten output. At close of local trade, benchmark Brent crude futures quoted 0.5 percent higher at US$65,66pb. Crude prices fell during Asian trade this morning – Business Report