D-Day for Ramaphosa, and new R2 billion resort opening in South Africa next month
South Africa is enjoying a nice boost for a turn in global market sentiment, which carried over to Tuesday, a public holiday celebrating Youth Day.
South African assets rose on Monday, with the rand strengthening, stocks climbing and government bonds firming.
This came as the dollar weakened and oil prices slipped to a three-month low following a preliminary agreement between the United States and Iran to end their war.
The rand traded as low as R16.12 against the dollar on the day, before pulling back to around R16.20 later in the day.
Global stocks and bonds rallied, while oil prices fell 5% after the US-Iran deal eased inflation concerns, with the dollar near a 10-day low against a basket of currencies as demand for safe-haven assets waned.
Prices of South African exports rose, with gold up for a third straight session and platinum gaining more than 4%.
Economists are optimistic that more good news will follow, as long as the peace deal holds.
“The rand is likely to see some further strength, and other financial market indicators improve for South Africa as well,” Investec chief economist Annabel Bishop said.
Separately, Statistics South Africa will release May inflation data on Wednesday, with analysts polled by Reuters expecting it to accelerate to 4.7% year-on-year, from 4% in April.
Some economists are anticipating a larger hit to inflation, as high as 5.1% y/y, but the turn in oil prices has at least cut interest rate hike expectations for the year.
Oil prices have crumbled to below $83 a barrel, a far reach from the $100 or $110 a barrel seen just a few months ago.
Traders will also watch retail sales data, due on Wednesday, for further clues on the health of Africa’s biggest economy.
5 important things happening in South Africa today
New luxury development coming: The new Club Med South Africa on KwaZulu-Natal’s North Coast will open on 4 July 2026, offering a luxury beach resort and safari lodge experience. Newsday visited the R2 billion resort ahead of launch to capture its progress. [Newsday]
Ramaphosa showdown: President Cyril Ramaphosa’s bid to halt Parliament’s Impeachment Committee will be heard in court on 15 and 16 July. The president is challenging the investigation report that found he had a case to answer, and wants the impeachment committee halted until the matter is finalised. [ENCA]
Green ID books are going: The Department of Home Affairs is continuing work to replace the green barcoded ID books with secure smart ID cards, with the DHA giving an update on the progress on ending what it says is the most defrauded identity document on the continent. [MyBroadband]
Cape Town port the pits: The port of Cape Town has been ranked as the worst in the world, with Durban moving off the bottom of the table due to interventions to improve its efficiency. Cape Town ranked 400th in the Container Port Performance Index (CPPI) compiled by the World Bank and S&P Global. [Daily Investor]
South Africa’s biggest killer: Diabetes has emerged as the biggest killer in South Africa, with Stats SA mortality data showing it is the leading cause of natural death in country. The data, which covers 2023, showed 27,692 or 5.8% of all deaths were related to the disease. [TimesLive]
With Reuters
Loading ...