Business

5 things you need to know before trading starts today

Staff Writer

 ·26 May 2016

Here’s what is happening in the markets:

• The South African Revenue Service has set up a special unit to investigate more than 1,700 South African names which have turned up in the Panama Papers data leak. So far SARS has identified 81 South Africans linked to 79 offshore companies. The Panama Papers are 11.5 million leaked documents that detail financial and attorney-client information for more than 214,488 offshore entities.

• Energy Minister Tina Joemat-Pettersson secretly sold 10 million barrels of oil kept by the country’s Strategic Fuel Fund – stock which is kept in the event of a crisis. This was done without permission from Treasury. The group is supposed to carry enough stock for 20 days, but now cannot cover even one day. The sale has been described as “a rotation”.

• South African stocks got a lift on Wednesday as global risks eased but the rand weakened on concerns that Africa’s most industrialised economy will get a ratings downgrade next month. On Thursday the rand was trading at R15.62 to the dollar, R23.01 to the pound and R17.49 to the euro.

• In global news, Brent crude oil rose above $50 a barrel for the first time in nearly seven months on Thursday but Asian shares struggled to gain traction, with worries about US interest rates and China’s slowing economy keeping many investors on the sidelines.

• Brent oil futures climbed above $50 a barrel on Thursday for the first time in nearly seven months, boosted after US government figures showed a sharper-than-expected drawdown in crude stocks last week. Global benchmark Brent futures rose 34 centsto as high as $50.08 per barrel, while US oil hit $49.88.

In other news: Political cartoonist Zapiro is unapologetic about a recent cartoon which depicted NPA head Shaun Abrahams as a monkey dancing for an organ grinder being played by President Jacob Zuma. The cartoon sparked outrage for the “racist” depiction of Abrahams. Zapiro said, in hindsight, it was a mistake – but said he isn’t afraid to offend.