Rand recovers after Nene firing sparks sell-off | Fin24
 
  • Clean Energy

    Red tape and political wrangling are hindering the expansion of solar power projects.

  • Jet Airways

    The airline that flew Gupta wedding guests to Sun City in 2013 has run out of money.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

Rand recovers after Nene firing sparks sell-off

Dec 11 2015 10:07

(iStock)

Company Data

NASPERS LIMITED [JSE:NPN]

Last traded 3705
Change 31
% Change 1
Cumulative volume 465791
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

BRITISH AMERICAN TOBACCO PLC [JSE:BTI]

Last traded 567
Change -3
% Change -1
Cumulative volume 431846
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

COMPAGNIE FINANCIERE RICHEMONT SA [JSE:CFR]

Last traded 108
Change 1
% Change 1
Cumulative volume 1430004
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Rand bulls didn't see Zuma coming

The consequences of Nene leaving

Finance minister announcement negative for SA

Rand dives after Nene removal

SA heading for junk status unless GDP grows

Widening current account deficit threatens rand

 

Johannesburg - The rand showed some signs of recovery on Friday after touching a record low in the previous session, but markets remain on edge after the shock sacking of Finance Minister Nhlanhla Nene this week.

Stocks opened slightly higher after also suffering in the last two days in the wake of Nene's removal.

President Jacob Zuma's removal of the respected Nene in favour of a relative unknown, lawmaker David van Rooyen, sent shockwaves through South Africa's financial markets.

READ: Markets react aggressively to Nene axing

By 09:00 the rand had inched up 0.42% to R15.41/$, paring some losses after plunging more than 5% following Nene's removal late on Wednesday and falling another 1% on Thursday.

Technical indicators offer a chink of light for any remaining rand bulls with 15.50 seen as an important support level. The local unit is trading at 80 on the 14-day relative strength index, well into oversold territory.

"Markets usually settle quite quickly but it is so hard to price the news that we expect ongoing swings today, although probably of a smaller magnitude than yesterday," Rand Merchant Bank currency strategist John Cairns said.

Yields on government bonds remained firm on selling pressure, with the benchmark paper due in 2026 steady at 9.910%, its highest level in seven years.

The JSE's Top 40 index opened 0.4% higher at 44 425 after losing 0.7% in the previous session.

The broader All-share index rose 0.3% to 49 124 points, having dropped more than 1% on Thursday.

Index heavyweight Naspers [JSE:NPN], consumer goods firms Richemont [JSE:CFR] and British American Tobacco [JSE:BTI] were among the early gainers.

Markets will be looking for more detail later in the session on Van Rooyen's plans when Minister in the Presidency Jeff Radebe briefs the media on the outcome of Wednesday's cabinet meeting.

rand  |  markets  |  currencies
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

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

Voting Booth

Do you think government can solve the Eskom crisis?

Previous results · Suggest a vote

Loading...