Moody’s warning; Covid-19 sends rand plunging

News

Rupert family fund oversubscribed; applications temporarily suspended

Applications for the Rupert family’s R1 billion small business fund, The Sukuma Relief Programme, which opened on Friday, have temporarily been suspended.

EOH Exco chop salaries by 25%; ask staff to cut by 20%

Technology group EOH narrowed its first half loss per share from continuing operations, while group revenue fell 14 per cent and costs rose. EOH CFO, Megan Pydigadu joins CNBC Africa for more.

SA launches green fund to drive investment into SMMEs

R488 million – that’s how much the Green Outcomes Fund has set aside for fund managers to increase investment in green Small, Medium and Micro-sized Enterprises. To discuss the fund - the first of its kind, CNBC Africa is joined by Tine Fisker Henriksen: Innovative Finance Lead, UCT GSB Bertha Centre and Mark van Wyk: Head of Unlisted Investments, Mergence Investment Managers.

JOHANNESBURG (Reuters) – South African rand slumped to its weakest in 18 months on Friday as deepening worries about the coronavirus sent global financial markets into a tailspin, while fears over a possible sovereign rating downgrade by Moody’s added to the pressure.

At 0627 GMT, the rand traded at 15.6350 per dollar, 0.96% weaker than its close on Thursday. The currency was at its weakest since Sept. 5, 2018.

Government bonds also weakened, with the yield on the instrument due in 2026 rising by 17.5 basis points to 8.04%.

“It’s been a rough week for markets all round, as the global economy struggles to come to terms with the fallout of the COVID-19 virus and the ultimate fully fledged economic impact,” said Bianca Botes, treasury partner at Peregrine Treasury Solutions.

Hopes that the coronavirus outbreak could be contained in China have vanished this week as infections spread across the globe.

The rand has also come under pressure as some analysts predicted that proposed cuts to the public sector wage bill would not be enough to save the country’s investment-grade credit rating.

Finance Minister Tito Mboweni unveiled the plan to cut the public sector wage bill by 160 billion rand ($10.50 billion) in his budget speech on Wednesday.

Moody’s said on Thursday it sees “elevated” risks to the budget forecasts due to doubts over whether trade unions would agree to cutting the public sector wage bill and potential liabilities from struggling state companies.

Moody’s is the last of the big three ratings agencies to have South Africa in investment grade, and is scheduled to review that rating next month.

($1 = 15.2377 rand)

- Advertisement -
- Advertisement -

Featured

Rand hits record low, goes over 19 to dollar as Fitch downgrades SA further into junk status

Last Friday Moody’s, the last rating agency to rate South Africa investment grade, cut South Africa’s sovereign credit rating to junk in line with economists’ forecast. Today Fitch further downgraded the country sending the rand plunging over 19 rand to the dollar. Below it gives its reasons...

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

Sarb guides banks to put dividends, bonuses on hold

South Africa’s Reserve Bank has guided banks to put dividends and executive bonuses on hold to help reduce stress on the banking sector from fighting Covid19. For more on this recommendation as well as other directives to ensure the health of the sector, CNBC Africa is joined by Unathi Kamlana, Head of Policy Statistics and Industry Support at the Prudential Authority.

Nigerian banking index gains but industrial goods sector declines

Investors are taking a keen interest in banking stocks today but the Industrial goods sector is facing a steep decline. Dare Fajimolu, Chief Research Officer at Blue Vertex joins CNBC Africa for a recap of today’s trade.

Nigeria to tap into its sovereign wealth fund to fight COVID-19 crisis

Nigeria plans to withdraw $150 million from its sovereign wealth fund as part of its fiscal stimulus measures in response to the COVID-19 outbreak. Michael Ango, the Associate Director; Tax Advisory and Regulatory Services at Andersen Tax joins CNBC Africa to assess Nigeria's response to the pandemic.

South African COVID-19 Tourism Relief Fund open for applications

In a bid to mitigate the impact of COVID-19 on South Africa’s tourism sector, the Department of Tourism is urging eligible small, micro and medium-sized enterprises (SMMEs) to apply for a share of the R200 million Tourism Relief Fund.
- Advertisement -

More Articles Like This

- Advertisement -