5 things you need to know before trading starts today
·5 May 2016
Here’s what is happening in the markets:
- Barclays Africa has reduced its owning stake in Barclays Africa (trading as Absa in South Africa) to 50.1%. South Africa’s government-controlled Public Investment Corporation (PIC) is one of the groups lapping up the stock, taking 1.2% more of the company and adding it to the 5.3% it already owns.
- Finance Minister Pravin Gordhan has slammed state-owned companies for being arrogant and belligerent – specifically referring to military arms group, Denel, and South African Airways. In terms of SAA, delays in appointing a new board are reportedly due to a stalemate with President Jacob Zuma, who wants his friend Dudu Myeni to remain chair of the company.
- South Africa’s rand firmed 1% against the dollar in early trade on Thursday, recovering from a nearly 4-week low hit in the previous session as investors fretted about the ailing economy. Stocks inched lower on Wednesday as low-income group lender Capitec Bank said it had been sued for allegedly offering short-term unsecured loans that amounted to “reckless credit”. The rand is trading at R14.85 to the dollar, R21.56 to the pound and R17.06 to the euro.
- In global news, Asian shares slipped for a seventh straight session on Thursday as mixed economic data did nothing to assuage concerns about global growth, keeping sovereign bonds well supported as a hedge against deflation risks. US stocks declined for a second day on Wednesday, weighed down by tepid data on private sector US jobs and a retreat in biotech shares.
- Oil prices jumped on Thursday as a huge wildfire in Canada disrupted its oil sands production, while escalating fighting in Libya threatened the North African nation’s output. Brent crude futures were trading at $45.32 per barrel, up 70 US cents, while US crude futures rose almost $1, to $44.69.
In other news: The Economic Freedom Fighters have been suspended from Parliament for five days after being removed from the House by security personnel. The party refused to be addressed by President Jacob Zuma. The EFF says Zuma will find no rest in Parliament, and they won’t stop until he’s held accountable for violating the Constitution.
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