5 important things you need to know before the JSE opens today
·17 Feb 2016
Here’s what’s happening in the markets today:
- South Africa cannot shake recession warnings, as ratings agency Moody’s issued another alert about the country’s slow economic growth, which is expected to be just 0.8% in 2016. While the country faces massive issues in terms of government policy, unemployment and a tough global environment – the agency said it’s the worst drought on record in SA that is aggravating the situation, threatening “near-zero” growth which could head to a recession.
- The Independent Communications Authority of South Africa (Icasa) has called on government to auction off radio spectrum to mobile network operators so they can roll out high-speed broadband services across the country. Everyone has been calling for the auctioning to take place, but government has been dragging its feet on the issue for the better part of a decade. Icasa awaits approval from Telecommunications Minister Siyabonga Cwele.
- South Africa’s rand weakened on Tuesday as global emerging market risk appetite faded, while Tiger Brands led blue-chip stocks lower after flagging weaker sales. The rand is now trading at R15.82 to the dollar, R22.63 to the pound and R17.67 to the euro.
- In global markets, after two sessions of gains, Asian shares were flat on Wednesday. Wall Street had its second consecutive session of gains as investors bought up consumer discretionary, industrial and tech shares. European markets ended two days of gains beaten down by a disappointing deal from oil exporters.
- Oil futures were on the rebound on Wednesday on investor hopes that Saudi Arabia and Russia will freeze oil output at January levels. Brent crude was up 34 US cents to $32.52, while US crude was up 19 US cents to $29.23. Locally, the central energy fund was reporting a 57-59 cent over-recovery for LRP fuel, while diesel had an under-recovery of 10 cents.
In other news: Students from UCT face criminal charges and suspension, after burning portraits from residences and setting a car and a bus alight. The students were reacting to the university’s request to remove a shack that was erected in protest of the university’s lack of residence accommodation for students from poorer backgrounds.a
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