5 things you need to know before trading opens today
·15 Apr 2016
Here’s what is happening in the markets:
- The ANC is facing rebellion in one of its key regions heading into the 2016 Municipal Elections. ANC leaders in Port Elizabeth (Nelson Mandela Bay) have lashed out against president Jacob Zuma and his supporters for “making a mockery” of the party and its people in the Nkandla saga. The officials are calling for the president to face discipline over the matter. The city is one of the most hotly contested, with the DA looking to usurp power in the coming elections.
- More Gupta family members, and those linked to them, are falling from the boards of SA companies. Businessman Romeo Kumalo has resigned from the Eskom board over allegations the family’s influence – and President Jacob Zuma has dropped Ajay Gupta from the board of Brand SA.
- The rand dipped on Thursday as the euro lost ground to the dollar due to weakening industrials, and a stronger dollar. However, the rand remained fairly stable around its strongest point since December 2015, which it hit when it reached R14.51 to the dollar on Wednesday. On Friday the rand was trading at R14.54 to the dollar, R20.57 to the pound and R16.37 to the euro.
- In global news, Asian stocks were subdued on Friday as caution over a weekend meeting of oil producers tempered risk sentiment, while the region’s markets took China’s relatively upbeat GDP data in stride. Stocks have gained globally this week, with the S&P 500 reaching its highest point so far this year overnight, and taking it a step closer to record highs scaled almost a year ago.
- Oil prices have pulled back from recent peaks on concerns that the top producers’ meeting may not result in a tightening of supply. US crude oil was up 5 US cents at $41.54 a barrel, while Brent crude rose 4 US cents to $43.88 a barrel. Data from the CEF showing the over/under recovery for SA fuel shows that at current rates, the petrol price will be increasing by 20 cents in May, while the diesel price should drop by 12 cents.
In other news: BusinessTech taste-tested chicken wings from South Africa’s major fast food outlets to determine which one offered the ultimate chicken wing snack. The quest ultimately came down to two contenders – but in the end, the winner was clear.
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