Mass protest warning, and bad news for people applying for driving licences in South Africa
South African markets stayed fixated on international moves on Thursday, with analysts forecasting the trend to hold in the weeks ahead.
The South African rand was range-bound on Thursday, buoyed mainly by higher gold prices as investors opted for the safe haven bullion amid trade frictions between Beijing and Washington.
The rand traded at R17.31 against the dollar, little changed from Wednesday’s close.
Investors this week have stayed focused on the simmering US-China trade spat, with Washington on Wednesday criticising China’s expanded rare earth export controls as a threat to global supply chains.
Meanwhile, the ongoing US government shutdown has halted scheduled economic data, with a Treasury official warning it could cost the economy up to $15 billion a week in lost output.
Like other risk-sensitive currencies, the rand often takes cues from global drivers such as US policy and economic data.
However, despite the global volatility, the USD-ZAR appears to have gathered itself and is trading in a tighter range.
Analysts noted that the local currency and markets appear to be waiting for a fresh catalyst related to rising US-China tensions and the impact this could have on US stock markets for direction.
On the Johannesburg Stock Exchange, the Top-40 index was last up 1%, boosted mainly by gold miners.
On Friday morning, the rand was trading at R17.34 to the dollar, R23.34 to the pound and R20.33 to the euro.
Gold was trading higher at $4,357 and ounce, while oil prices continued to decline, hitting $60.89 a barrel.
5 important things happening in South Africa today
Mass protest in Joburg: Civil society group WaterCAN has announced a mass protest in Johannesburg on Saturday, 1 November. The protest has been organised by a coalition of residents, community organisations, and civil society groups. These include WaterCAN, Abahlali Freedom Park, Ahmed Kathrada Foundation, CADE, Defend our Democracy, JoburgCAN, Joburg Crisis Alliance, Professionals and Business for Change, and others [Newsday]
How to get a free temporary driving licence: The Road Traffic Management Corporation says motorists must still pay for temporary driving licences, despite the Department of Transport’s announcement that the fee had been waived. The fee exemption only applies if motorists meet three conditions, including that their licence must have expired in a specific time window. [MyBroadband]
Major red flag for Eskom: Auditors have flagged a risk with Eskom’s ability to remain a going concern, with a R54 billion settlement with energy regulator Nersa a key factor. The latest Auditor General report has factored in the payment when assessing Eskom’s finances, but there is an outside chance that the payment could be set aside by the courts. Auditors have already highlighted Eskom’s over-reliance on government bailouts and insane municipal debts as huge problems on its books. [BusinessLive]
Pay back the money: The Presidency is fighting to get former president Jacob Zuma to pay back R29 million in taxpayer funds that he spent on his corruption trial costs. However, the office does not believe that Zuma will ever pay, given that R6.2 million that has already been ordered by the courts to be paid back has been ignored. The Presidency’s legal team said it must be put on record that Zuma has paid nothing. [News24]
Mchunu under fire: ‘Special leave’ Police Minister Senzo Mchunu has denied any association with criminals, criminal syndicates or any individuals tied to criminal activity. He told Parliament’s Ad Hoc Committee investigating police corruption that he is willing to hand over all his devices to prove his innocence, rejecting allegations that he has been influenced by controversial businessmen Brown Mogotsi and Vusimuzi ‘Cat’ Matlala. [EWN]
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