5 things you need to know before trading opens today
·7 Mar 2016
Here’s what is happening in the markets:
- While the VAT rate was left as is during finance minister Pravin Gordhan’s budget speech last month, a hike in the tax is still on the cards. Analysts note that the minister left a VAT hike open, and may pull that card when funding is needed for a larger project, such as the National Healthcare plan.
- The stand-off between Gordhan and SARS continues, as the Hawks await the minister’s response to 27 questions they sent him. Weekend reports pointed to the saga polarising members of the ANC, with members falling either behind Gordhan, or President Jacob Zuma – who along with police minister Nathi Nhleko – support the Hawks’ investigation.
- South Africa’s rand rose to its highest in more than a week against the US dollar on Friday, shrugging off a jump in US employment, while stocks climbed to a new three-month high, spurred by a global commodities rally, particularly in metals. On Monday the rand was trading at R15.37 to the dollar, R21.83 to the pound and R16.90 to the euro.
- In global markets, Asian shares hit two-month highs on Monday, extending sharp gains from last week, following upbeat US jobs data and a rebound in oil and commodity prices. Wall Street ended higher on Friday after employment data allayed investors’ concerns about a sluggish economy without bolstering fears of an imminent interest rate hike.
- Oil prices climbed on Monday as tightening supply and an improving global outlook strengthened the sentiment for a market recovery. Brent crude was up to $39.49 per barrel, while US crude was trading at $36.63 a barrel.
In other news: E-toll collection company, ETC, has had a management shakeup, with CEO Jamie Surkont stepping down and being succeeded by Skhumbuzo Macozoma. ETC in February threatened Gauteng motorists with legal action for not paying e-tolls.
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