Sunday , January 17 2021

Rand weakens in prudent trade, stocks decline



At 1523 GMT, the ranch was 0.62% weaker at 13.7000 per dollar, as it struggled to keep its last profits under the mark for technical resistance of 13.60.

Photo: EWN.

JOHANNESBURG – Early morning the dollar weakened on Monday, a week ago, full of market events.

At 1523 GMT, the ranch was 0.62% weaker at 13.7000 per dollar, as it struggled to keep its last profits under the mark for technical resistance of 13.60.

"There are several risky events next week, so the market is a little cautious," said ETNA analyst Jana van Deventer. "On Wednesday evening, we have a FED meeting and we also have US-Chinese trade talks that take place on Wednesdays and Thursdays

US politicians are expected to signal a slump in rising interest rates on Wednesday and acknowledge rising risks to the US economy. This will probably affect the dollar.

Investors are also awaiting a visit by China's Deputy Prime Minister Liu He in Washington on 30-31 January for the next round of trade talks with the United States.

Government bonds weakened, yielding benchmark bonds due in 2026 added 4.5 basis points to 8.765%.

Shares declined as the Johannesburg Stock Exchange index fell 0.61 percent to 47,600 points, while the broader index fell 0.52 percent to 53,767.

Large banks and retailers led to a decline in the blue chip index, with Shoprite, FirstRand, Truworths, Absa and Standard Bank being the lowest.

Banks and retailers are sensitive to consumer health after a number of bad news from retailers last week.

Pepkor's clothing and furniture trader, formerly Steinhoff Africa Retail, declined by 4.2% after a trade update, showing that quarter-on-quarter revenues grew by 6.1% in the three months to end-December.


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