Prime interest rate ‘cartel’ investigation in South Africa, and South African retail giant in hot water
The rand rose in early trading on Wednesday, supported by record-high gold prices. Global markets continued to evaluate key US inflation indicators, which could provide insights into the Federal Reserve’s interest rate path.
The rand was trading at 16.3525 against the US dollar, showing an increase of approximately 0.2% compared to Tuesday’s close.
Gold, a significant South African export, reached a new record on Wednesday, with silver surpassing the $90 mark for the first time.
The US dollar remained stable against a basket of currencies as traders assessed softer-than-expected US inflation figures while awaiting the core Producer Price Index data for December, which will be released later in the day.
Analysts expect the rand to stay within a narrow range, influenced by global factors such as unrest in Iran, concerns about the Fed’s independence, and the potential extension of the US’s African Growth and Opportunity Act.
On the Johannesburg Stock Exchange, the Top-40 index was up 0.4% in early trading.
On Thursday, 15 January, the rand is trading at R16.42 to the dollar, R22.05 to the pound, and R19.11 to the euro. Gold is trading slightly lower at $4,591.00 per ounce, while oil is up to $64.38 a barrel.
5 important things happening in South Africa today
Prime interest rate ‘cartel’ investigation: The Competition Commission has confirmed it is investigating potential cartel behaviour related to the prime lending rate, which banks use to price loans. [News24]
South African retail giant in hot water: Retail giant SPAR has denied any involvement after a multidisciplinary operation in the City of Tshwane uncovered a recycling site allegedly engaged in the illegal production of plastic carrier bags. SPAR said it takes responsible sourcing, regulatory compliance and environmental stewardship seriously, and SPAR-branded plastic carrier bags are not being produced by an authorised supplier. [Newsday]
Sanral takes a hit: The Supreme Court of Appeal has declared unlawful the South African National Roads Agency’s (Sanral) decision to retrospectively apply a new policy on rest and service facilities on national roads. [Moneyweb]
IDT CEO and spokesperson resign: The suspended CEO of the Independent Development Trust, Tebogo Malaka, has chosen to resign instead of confronting a disciplinary hearing regarding her alleged involvement in an attempt to bribe a journalist. [Daily Maverick]
Alarm bells for BMW: BMW ended last year with lowered sales figures. It started the year with 1,184 units sold and consistently sold over 1,000 units for the rest of the year. That is, before December, when the German giant sold only 843 units. The brand’s sales drop coincides with the rise of both Jetour and Omoda and Jaecoo, which may point towards their luxury offerings eating into the share of legacy badges. [TopAuto]
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