5 things you need to know before the JSE opens today
·29 Feb 2016
Here’s what’s happening in the markets:
- Absa has moved to reassure customers after reports over the weekend said that its parent company, Barclays, would be announcing an exit from the African business. The Financial Times reported that an announcement from Barclays over the sale of its 62.3% stake in the business was imminent.
- A very public spat between Finance Minister Pravin Gordhan and SARS head Tom Monyane is heating up, as the minister gains for support in what he calls a plot to discredit him. While the spat is between the two finance heads, there are reportedly undercurrent pointing to poor decisions made by president Jacob Zuma – with Gordhan’s growing support base leaving the president vulnerable.
- The Central Energy Fund released a late petrol price update over the weekend, announcing the new prices set to take effect this Wednesday (2 March). Petrol is set to come down by 69 cents for 93 and 95 LRP/ULP fuel, while diesel is expected to increase by 14 and 15 cents for 0.005% and 0.05% sulphur.
- The rand is currently trading at R16.13 to dollar, continuing to suffer from the effects of South Africa’s budget speech last week – though it has recovered slightly from the highs of R16.70 to the dollar it hit right after the speech. It is trading at R22.38 to the pound and R17.63 to the euro.
- Crude oil futures rose on Monday after gaining over 15% last week, with some indicators pointing to the possibility the market could be bottoming out. Brent was up almost half a dollar to $35.51 on Monday, while US crude was at $32.94 a barrel. Traders are all betting on higher oil prices, with indicators also pointing to future increases.
In other news: The ANC has condemned the violent acts at university campuses across the country by students protesting against a lack of higher education funding. The party said that poverty should not be used as an excuse to be violent.
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