5 things you need to know before trading opens today
·3 Mar 2016
Here’s what is happening in the markets:
- Gordhan vs SARS has become the new splitting point among politicians, with both Cabinet and ANC officials picking sides on the matter. Finance minister Pravin Gordhan failed to answer questions brought by the Hawks investigative unit on Wednesday, turning the tables and questioning the Hawks on their authority to question him. President Jacob Zuma supports the investigation.
- MTN’s full year results have taken a hit after the group made a R9.3 billion provision for a fine in Nigeria. The group’s headline earnings fell sharply by 51.4% due to the provision, and revenue for the year was flat. The group’s South African unit was more positive, with revenue growing by 3%, and its subscriber base growing by 9.3% to 30.6 million customers.
- South African stocks rose to their highest level this year on Wednesday as furniture group Steinhoff climbed on news that its Conforama unit was considering a counter bid for a top European retailer. The local bourse was also lifted by positive global sentiment and foreign buying in riskier markets. The rand is trading at R15.56 to the dollar on Thursday, R21.91 to the pound and R16.90 to the euro.
- In global news, Asian shares were bound for a third straight session of gains on Thursday as upbeat data on US jobs and a rally in a range of commodities whetted risk appetites globally. Energy and bank stocks led Wall Street higher on Wednesday, adding to a rally in the previous session.
- Oil prices are creeping higher as sentiment is spreading that an almost 2 year market rout is coming to an end as production slows amid strong demand. US crude was up 10 US cents to $34.76 a barrel, while Brent crude is up to $37.00 a barrel. Despite the sentiment, analysts don’t expect sharp rises in oil any time soon, as production remains above demand.
In other news: Medical aids and South Africa’s private medical healthcare industry is under the spotlight as the Competition Commission investigates market domination, prices and practices in the sector. Yesterday, Discovery Healthy was put in the hot seat, talking about fair prices.
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