Africa-Press – South-Africa. JOHANNESBURG – The South African currency garnered strength from a better-than-expected Q4 GDP release and rising external tailwinds according to NKC Research.
The latest South African GDP print came in slightly stronger than our prediction for the last quarter of 2020. However, we do not expect this slight positive momentum generated in Q4 2020 to be carried over to Q1 2021. In fact, the second wave of Covid-19 infections resulted in renewed adjusted level-3 restrictions lasting from late-December into Q1, which will have a significant impact on economic output.
The outlook for the rest of the year hinges very much on the success of government’s vaccine rollout programme. At this point in time the vaccination progress has been slow, and we do not see government achieving its goal of herd-immunity by year-end. We project economic growth of 2.0 percent for 2021.
At the close of local trade, the rand quoted 0.84 percent stronger at R15.35/$, after trading in range of R15.29/$ – R15.55/$. The rand traded firmer overnight. The expected range of the rand against the dollar today is R15.20/$ – R15.50/$.
South African bourse
The JSE All Share (+0.34 percent) strengthened on Tuesday, thanks to a 5.22 percent surge in gold mining stocks. Meanwhile, technology shares were up 1.72 percent and industrials rose by 1.28 percent. In the overall emerging market sphere, the MSCI Emerging Market Index (+0.74 percent) traded in the black.
Brent crude oil
The Brent oil price stepped onto the back foot amid choppy trade yesterday ahead of the American Petroleum Institute’s inventory report. At the close of local trade, benchmark Brent crude futures quoted 0.88 percent lower at $67.90pb. Crude prices traded weaker during Asian trade this morning.
BUSINESS REPORT
