• Voter paralysis

    With so much tilting voters against change, democratic reason is the loser, says Solly Moeng.

  • The power of perseverance

    True grit is a reliable predictor of who will achieve success in life, says Ian Mann.

  • It's the system

    The system sucks and it’s being used far too often as an excuse, says Mandi Smallhorne.

All data is delayed
Loading...
See More

Rand weakens on fragile global sentiment

Jan 15 2016 09:24

Johannesburg - The rand weakened in early trade on Friday, erasing gains of the previous session, as global risk aversion caused by fears over the health of the global economy on falling oil prices hit risk assets.

Stocks were however set to open slightly firmer at 07:00, with the JSE securities exchange's Top-40 futures index adding 0.50%.

Today's big event in the local equities market is the listing of the world's largest brewer, Anheuser Busch InBev on the Johannesburg Stock Exchange (JSE) after the Belguim-based brewer won over peer SABMiller in October.

The rand was 0.73% weaker at R16.5700/$ by 08:50 compared with Thursday's close of R16.4500/$.

China's fragile economy, lower oil prices and local fundamentals undercut sentiment in Africa's most advanced economy, analysts said.

"The rand has reattached to these global themes. It will not take much to get the rand moving again as the US, China, oil and local sentiment all provide meaningful risk," said Rand Merchant Bank currency strategist John Cairns.

Although the oil price decline is good for South Africa and the rand given that the commodity is the country's biggest single import, Cairns said "global sentiment is still very fragile."

In fixed income, the yield on the benchmark government bond maturing in 2026 shed 3 basis points to 9.630%.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

rand  |  markets  |  currencies

NEXT ON FIN24X

 
 
 
 

Company Snapshot

We're talking about:

THE DEBT ISSUE

Debt is one of the biggest financial issues facing South Africans today. Find out how you can avoid and manage your debt with Fin24 and Debt Rescue.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Would you take out a payday loan?

Previous results · Suggest a vote

Loading...