5 things you need to know before trading opens today
·14 Apr 2016
Here’s what is happening in the markets:
- The Beverage Association of South Africa (BevSA) – whose members include Coca Cola, Pepsi and SABMiller – will be meeting with Treasury next week to discuss the proposed sugar tax for South Africa. While no official number has been set, the tax could be as high as 20%. The beverage industry has called the tax “discriminatory” and say it is bound to fail.
- Treasury says that the directors of state-owned military and defence group, Denel will face charges of financial misconduct if they move ahead with a new joint venture with a company owned by the controversial Gupta family. Denel said last week that it had set up a joint venture with a Gupta-associated company, VR Laser Services, and that all legal processes had been followed. However, Treasury said that it has not yet approved the deal, making it illegal if it proceeds.
- South Africa’s rand extended gains against the dollar on Wednesday, scaling its strongest level since early December, partly driven by positive sentiment towards emerging markets, while stock emulated the upward movement. On Thursday the rand was trading at R14.62 to the dollar, R20.69 to the pound and R16.49 to the euro.
- In global news, Asian stocks rose to their highest levels in more than four months on Thursday and regional currencies weakened led by the Singapore dollar as hopes grew that more central banks will join the city state in easing monetary policy in the coming months. Wall Street rallied for a second straight day on Wednesday, led by gains in beaten-down financial shares after JPMorgan’s quarterly results.
- Oil prices fell on Thursday as OPEC warned of slowing demand and Russia hinted that there would only be a loose agreement with little commitments at the upcoming exporter meeting to rein in ballooning oversupply. Brent crude futures were down 1% at $43.66 a barrel, while US crude futures were also down 1% at $41.60.
In other news: The next CEO of the MTN Group has been filtered down to three possible candidates – two from within the company, and one from without, Bloomberg reports. Executive Chairman, Phuthuma Nhleko, who stepped in to guide the company through its tough time with Nigerian authorities, is planning to step down from the CEO chair in May.
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