MARKETS WRAP

THE RAND firmed yesterday, recovering most of its losses as emerging markets broadly recovered from heavy selling in the previous session triggered by a dive in oil prices and fears about the economic impact of the coronavirus.

However, at 5pm, the rand bid at R16.0512 to the dollar, 10 cents softer than at the same time on Monday, having tumbled to R17, a four-year trough, on Monday as panic selling in Asia spread to the south and western hemispheres.

“We can expect the rand to continue in a broad range, while a break below R15.85 will affirm a move stronger for the local unit,” said Bianca Botes, Treasury Partner at Peregrine Treasury Solutions.

A price war between top producers Saudi Arabia and Russia triggered the biggest daily rout in oil prices since the 1991 Gulf War, with crude prices diving more than 25 percent, kindling a deep selloff across risk assets already reeling from coronavirus fears.

But an announcement by the US of plans to take more measures to support its economy soothed some of those worries, while a rebound in oil prices also helped risk demand.

Stocks rose in line with a rebound in global markets, while FirstRand shares rose after half-year profits.

The benchmark JSE Top40 index gained 1.29 percent to 44 252.34 points while the all share index rose 1.32 percent to 49 466.01 points.

closed up 4.52 percent to R52.26 after posting a 5 percent rise in interim profit .

“The results were pretty decent given the torrid trading conditions we are facing. Bad debts are rising and that is obviously a concern so that put somewhat of a dampener on what would have ideally been a very good set of results in the current market conditions,” said Ryan Woods, a trader at Independent Securities.

Curbing further gain, bullion stocks fell 7.7 percent amid profit taking after risk sentiment improved, with down 9.49 percent to

5.51 percent Reuters

FirstRand Ashanti

Gold Fields

R297.78 and lower at R102.60.

IAngloGold