Rand holds on to Friday’s Zuma surge
The rand, which surged 1.6% on Friday to R13.26/$ after a court opened the way for President Jacob Zuma to face corruption charges he has long avoided, held on to most of its gains on Monday morning.
The rand was further boosted against the dollar on Friday by US inflation for September coming in at 2.2%, lower than an economists’ consensus of 2.3%. Although US inflation is above the Federal Reserve Bank’s 2% target, the rise was seen as temporary, making further interest rate increases in 2017 unlikely.
"The biggest surprise in the US economy this year has been inflation," Fed chairwoman Janet Yellen said in a speech on Sunday.
The rand was trading at R13.30/$, R15.71/€ and R17.68/£ at 7am.
Sasol may benefit on Monday from international oil prices rising about 1% on supply fears as Iraqi forces advanced against Kurdish Peshmerga fighters on Sunday.
Rising oil prices helped BHP gain 2.31% to A$26.97, lifting Sydney’s S&P/ASX 200 index by 0.56%. Tokyo’s Topix index was up 0.8% and Hong Kong’s Hang Seng index was up 0.88%.
Residential property developer Calgro M3 said on October 9 it that expected to report on Monday that headline earnings per share (HEPS) for the six months to end-August to decline by about 27%.
Calgro said this was due to unrealised profit from a real estate investment trust joint-venture with African Housing Company. The project will be accounted for on Calgro’s balance sheet rather than income statement until the units are completed, tenanted and the portfolio revalued.
"The impact of this unrealised profit is substantial to the financial performance and has necessitated the group to institute new metrics to measure operational performance between reporting periods, as well as to give all stakeholders an indication of the group’s performance that is consistent between periods," the company said in a trading statement.