Rand back over R13.80/$, while Asian slump points to bad day for JSE
The rand weakened back over R13.80 to the dollar on Tuesday morning, reversing much of the "Ramaphosa rally" that started in November.
The South African currency slid nearly 3% on Monday, weakening from R13.43 to trade at R13.85 to the dollar at 6.50am.
The rand suffered a similar slide against other major currencies, trading at R16.11 to the euro and R18.37 to the pound.
A 3% dip by Chinese mainland stock markets — which were catching up, after a holiday, with other markets’ reaction to the escalating tit-for-tat trade war with US President Donald Trump — indicates a bad Tuesday for the JSE.
Hong Kong’s Hang Seng index was down 2.2%, with Naspers’s 31%-owned Chinese associate Tencent falling 2.24% to HK$400.80.
Trump issued a statement on Monday saying he intended imposing 10% import tariffs on $200bn worth of Chinese goods in retaliation for China matching his previously announced tariffs on $50bn worth of goods.
Murray & Roberts (M&R) shareholders meet at 10am in Bedfordview on Tuesday to vote on its proposed acquisition of Aveng.
The meeting will be nail-biting for M&R directors, who attempted to limit the voting rights of the group’s 44%-owner Aton to about 30%.
On Monday, the Competition Tribunal ruled that Aton’s votes be limited to slightly under half the total cast by other shareholders attending the meeting.
This means Aton will need the support of at least one other shareholder to block M&R’s acquisition of Aveng.