Markets WRAP: Rand closes at R13.92/$

The rand closed at R13.92 to the greenback.

The day's range was between R13.82 and R13.95. 

Andre Botha, senior dealer at TreasuryONE said earlier that the rand was trading in tight ranges as it started to find its footing following an eventful couple of weeks.

“Most of the risks of the past couple of weeks have been washed out and the rand is trading slightly higher than where it did before the SONA speech and the budget.

"This would suggest that the events were priced into the markets. Overnight we have seen the US dollar sliding against the Euro as Fed Chair Powell delivered testimony to the Senate stating that the Fed will keep on with its dovish approach, and will only alter their view should the data warrant a change in approach.

"The US dollar will be key in the prospects of the rand and we could get some movement as details of the Trump/Kim meeting filters into the market. 

"Furthermore, the pound is the currency to watch as its gaining momentum on the prospect of Brexit delays. This is a key developing story and worth keeping our eye as the pound will have a volatile March. 

"Expect the Rand to trade in tight ranges as EM is currently enjoying a little reprieve from negative sentiment and should the rand hold these levels, the bias will shift to a lower rand.” 

Meanwhile Bianca Botes from Peregrine Treasury Solutions said the testimony by Jerome Powell, Chairman of the Fed, saw the dollar slide to a three week low. 

"Powell indicated that although the US economy is likely to continue on its solid growth path regardless of rising risks and recent soft economic data, the Fed will remain patient in its interest rate approach.

"From a data perspective, the EU is due to release Business Climate and Consumer Confidence figures today, while the US will release Manufacturing Orders.

"The softer dollar saw the rand remaining below the R13.90/$ mark, opening at R13.85 this morning. The rand is trading in a tight range at the moment, with technical levels remaining at an intraday range of R13.80 to R13.93,"  she said.

Naspers announced this morning that it was a "proud moment" for the company as MultiChoice listed on the JSE.

MultiChoice Group includes MultiChoice South Africa, MultiChoice Africa, Showmax Africa, and Irdeto. It was the first listing on the JSE for 2019.

In a statement, MultiChoice Group CEO Calvo Mawela said, "Today’s listing is an important milestone in our exciting journey of growth. As one of the fastest-growing pay-TV broadcast providers globally, our strong financial position at listing is backed by attractive long-term growth opportunities in both subscriber numbers and revenue.

"MCG has a highly cash generative core with no financial debt, and we are poised to deliver value to our shareholders over time.”

Donna Nemer, Director, Capital Markets and Group Strategy at the JSE, welcomed the MultiChoice Group listing, adding that, “This significant listing is a cause for celebration not only for the Company, but for the JSE as well.

"This is an opportunity for MultiChoice to unlock a wealth of potential and capital for its investors on one of the most trusted, stable and robust exchanges globally. 

"We are delighted to be part of this journey and will continue to work hard to build better markets for the MultiChoice Group and its shareholders.” 

Meanwhile, Bob van Dijk, Naspers Chief Executive Officer, said: “Today is a proud day for Naspers. Listing MultiChoice Group through an unbundling unlocks value for Naspers shareholders by creating the opportunity for them to own a direct stake in MultiChoice Group, a top-40 JSE-listed African entertainment group.

"We are also very pleased to be able to create further value for Phuthuma Nathi shareholders, who, through MultiChoice South Africa, have already participated in one of South Africa’s most successful empowerment schemes.

"As MultiChoice Group embarks on its next exciting chapter, I look forward to seeing the team build further on their impressive success story.”

The company said MCG joins five companies listed in the media sector on the JSE, which prior to the MCG listing contributed 9% to the total market capitalisation of the JSE (R1.39 trillion).

Steinhoff announced on Wednesday morning that Steinhoff Investment Holdings will publish its 2017 and 2018 audited financial statements by the end of May. Steinhoff Investment Holdings is one of the group's subsidiaries.

In a SENS statement, it said, "Shareholders are referred to the announcement made on 6 December 2018, where the Company announced that Steinhoff International Holdings N.V. had estimated that it will publish its Group audited financial statements for 2017 and 2018 by the middle of April 2019, and that the 2017 and 2018 financial statements for Steinhoff Investment Holdings Limited will be released shortly thereafter.

"The Company is today providing an update that it estimates that it will publish the 2017 and 2018 audited financial statements for Steinhoff Investment Holdings Limited by the end of May 2019." 

Stocks post modest advance; dollar steadies

Bloomberg

Asian stocks posted modest gains as traders awaited the second half of Federal Reserve Chairman Jerome Powell’s testimony to Congress on the economy and keep a watch on the US-North Korea summit.

Equities edged higher in Japan, Australia and Hong Kong, and outperformed in China. The dollar steadied alongside Treasuries.

Earlier, the S&P 500 Index closed in the red after Powell warned that growth looked uneven and policy makers will be patient on interest-rate adjustments.

The pound held Tuesday’s gains spurred by a promise from UK Prime Minister Theresa May for a vote to delay Brexit if her proposed deal fails.

Trading in equity and bond futures was impacted due to a technical problem at CME Group Inc. Powell said with inflation pressures muted and ongoing government policy uncertainty, a patient approach to future policy changes was warranted.

“Going forward, our policy decisions will continue to be data dependent and will take into account new information as economic conditions and the outlook evolve,’’ he told the Senate Banking Committee.

Investors are still grappling with a host of uncertainties from further developments on trade to Brexit that could rein in a recovery in global equities from December lows.

Meanwhile, US President Donald Trump is in Hanoi for a second summit with North Korean leader Kim Jong Un. Elsewhere, oil climbed, reversing a loss from earlier in the week that were spurred by criticism from President Donald Trump that prices are too high.

MultiChoice lists on JSE

MultiChoice will start trading on the JSE on Wednesday, February 27. This follows its unbundling from Naspers, which was announced in September 2018.

It will list on the "broadcasting and entertainment" sector of the stock exchange. Multichoice serves 14 million customers across 50 African markets, and intends to continue growing this base.

Steinhoff expects to soon receive long-awaited PwC forensic report

Fourteen months after it was to hired to conduct an independent forensic investigation into Steinhoff, PwC is expected to soon submit its long-awaited report to the company's leadership. 

PwC was hired by the Stellenbosch-headquartered furniture and household goods conglomerate to scrutinize its books in the wake of the abrupt resignation of Steinhoff CEO Markus Jooste in December 2017 after the group's auditors flagged accounting irregularities.