Rand re­cov­ers, emerg­ing mar­ket shares up

The Mercury - - MARKETS - Reuters

FTSE/JSE Africa In­dex Se­ries

EMERG­ING mar­ket shares saw their big­gest rise in al­most three weeks yes­ter­day as a fresh high for world stocks and a pause in the dol­lar’s up­ward march helped halt a re­cent sell-off in the top per­form­ing as­set class.

The main gains came in Rus­sia, where firm­ing oil prices lifted the rou­ble off a two-month low, in Turkey, where the lira also re­bounded, and in Poland as its stock mar­ket climbed for a fourth straight ses­sion.

Cen­tral Europe’s Czech crown was also hov­er­ing near a 4-year high against the euro, main­tain­ing its po­si­tion as 2017’s top global FX per­former, ahead of what is ex­pected to be a sec­ond in­ter­est rate hike of the year on Thurs­day.

It wasn’t all one-way traf­fic, how­ever. South Africa’s rand was back in re­verse, hav­ing hit an 11-month low last week fol­low­ing jar­ring “mid-term” bud­get fore­casts, which fanned fears about its re­main­ing in­vest­ment grade credit rat­ings.

Lo­cal data due this week in­clude Septem­ber trade fig­ures and third-quar­ter un­em­ploy­ment num­bers.

Yields on Chi­nese 10-year trea­sury bonds also rose to their high­est level since Oc­to­ber 2014, amid signs of a fur­ther clam­p­down by Bei­jing on riskier types of lend­ing.

Shanghai stocks posted their big­gest one-day slide in 11 weeks too, as ex­pec­ta­tions of a new wave of ini­tial pub­lic of­fer­ings (IPOs) also weighed on traders’ sen­ti­ment. China’s se­cu­ri­ties reg­u­la­tor had ap­proved nine IPOs on Fri­day that would raise a to­tal of 9.5 bil­lion yuan (R20.14bn), more than dou­ble the av­er­age funds raised in the past weeks.

A weaker dol­lar had helped most of the rest of Asia’s de­vel­op­ing mar­kets.

Thai­land’s baht rode its big­gest rise in al­most three weeks and South Korea’s won was up 0.6 per­cent at its high­est since Septem­ber 1.

Tai­wan shares were lifted by a gain of more than 1 per­cent in its semi­con­duc­tor in­dex. Ap­ple said last week that pre-or­ders for iPhone X were “off the charts”.

Back in Africa, Kenya’s 2024 sov­er­eign dol­lar bond was trad­ing up 0.18 cents, at its high­est since mid-Septem­ber ac­cord­ing to early morn­ing Tradeweb prices.

Op­po­si­tion leader Raila Odinga had called for calm on Sun­day as he vis­ited Nairobi. – Reuters

In­for­ma­tion supplied by Pro­fileData .

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.