Business

5 things you need to know before trading starts today

Staff Writer

 ·20 May 2016

Here’s what is happening in the markets:

• While the South Africa Reserve Bank skipped on raising rates in its latest review, it has warned that rate hikes are still likely to happen at some point this year. The central bank has raised concerns about economic growth and inflation, and said that the rate hikes were merely put on hold. Rates have been hiked consistently since 2014, moving up 200 basis points in total.

• MTN South Afirca says it will inject R12 billion into its network in its 2016 financial year. The operator recently lost its place as the highest valued mobile operator on the continent – being succeeded by Vodacom. The group says it is upping capex to help improve speeds on its 3G and LTE networks.

• South Africa’s rand retreated on Thursday after the central bank kept interest rates on hold, while stocks fell as the prices of commodities such as gold, silver and platinum slid on bets of a US rate hike. On Friday the currency was trading at R15.79 to the dollar, R23.06 to the pound and R17.70 to the euro.

• In global news, Asian shares edged up on Friday but were on track for a weekly loss, while the dollar was poised for a winning week on bets the US Federal Reserve could raise rates as early as next month. The S&P 500 fell on Thursday to its lowest since March as Wall Street became more worried that interest rates could raised as early as June.

• Oil prices rose in early trading on Friday as turmoil in Nigeria, shale bankruptcies in the United States and crisis in Venezuela all contributed to tightening supplies. Despite this, brimming inventories across the world were preventing supply shortfalls and sharper price spikes, traders said. Brent crude is trading at $49.10 per barrel, while US oil is at $48.55 a barrel.

In other news: The local KwaZulu-Natal government has approved a R11.5 billion industrial park to boost the car manufacturing sector in the province. The development will be in four phases, with completion date set for 2022.