5 important things you should know before tradings opens today
·18 May 2016
Here’s what is happening in the markets:
- Barclays Africa is set to receive bids from a large number of groups for the 50.1% Barclays stake up for sale – with the likes of Sanlam, Patrice Motsepe, Bob Diamond and even Eskom’s retirement fund all expressing interest. However, the deal may boil down to the best BEE option, with a staff scheme option on the cards, too, BDLive reports.
- South Africa will “most likely” achieve the strict consolidation targets set out in the budget the Treasury said on Tuesday, despite recent signs that the economy was headed for a prolonged period of low growth. However, Treasury said it is not convinced it will hit its revenue targets for the year.
- The rand rallied nearly one percent late on Tuesday after Finance Minister Pravin Gordhan said reports of his imminent arrest amounted to an attack on the Treasury. On Wednesday it was trading at R15.68 to the dollar, R22.63 to the pound and R17.69 to the euro.
- In global news, Asian shares weakened on Wednesday in the wake of accelerating US inflation and comments from Federal Reserve officials that rekindled prospects of an interest rate rise as early as June. Wall Street sold off on Tuesday as investors boosted their bets on the Federal Reserve raising rates later this year.
- Oil prices were trading near 2016 highs on Wednesday, as supply disruptions and output cuts continued to tighten the market, although traders cautioned that high global crude inventories were still weighing on markets. International Brent crude futures were trading at $49.31 per barrel while US crude futures were unchanged at $48.31 a barrel.
In other news: Political party the EFF, which was expelled from Parliament yet again on Tuesday, said it would not stop its disruptive behaviour until President Jacob Zuma resigns from office. Leader Julius Malema said it would meet violence with violence referring to the way his party was pushed out of Parliament.
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