MARKET WRAP: JSE slips as rand pushes to R14.40/$

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Local bourse tracks weaker world markets, despite an 18% surge by MTN, while the euro and rand slide

The JSE closed lower on Thursday, with a stronger dollar putting pressure on local banks and financials.

The rand was about 1% weaker at R14.4087/$ as the JSE closed, but was faring a little better against the euro and the pound. European banks were sharply down after the ECB’s announcement. Local news was a little downbeat. The Reserve Bank said that SA’s current account deficit narrowed to 2.2% of GDP in the fourth quarter of 2018, from 3.7% in the third quarter. Although a smaller deficit is good news for the rand, a closer look at the data, however, showed that this was due to weak local demand rather than economic strength, said Capital Economics senior emerging-markets economist John Ashbourne.

 

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