Market News

JOHANNESBURG, Oct 5 (Reuters) – The South African rand slipped in early trading on Monday as domestic investors awaited the release of the local manufacturing purchasing managers’ index (PMI) and the October fuel-price adjustment.

• At 0619 GMT the rand traded at 16.6825 against the dollar, about 0.2% down from its previous close
• Domestic investors will look to the September S&P Global whole-economy PMI at 0715 GMT for clues on business conditions in the country.
• A manufacturing PMI recently released showed that sentiment improved in September after three months of contraction, helped by a rebound in new orders
• Later in the day, the Department of Petroleum Resources is expected to announce the monthly fuel-price adjustment, with analysts warning consumers to prepare for petrol prices to rise by about 3.29 rand per litre and diesel prices by around 3.19 rand per litre
• “The combination of much higher oil prices and the depreciation of the ZAR has heavily impacted prices, which will now exert further inflationary pressure on the system,” said ETM Analytics in a note
• South Africa’s benchmark 2035 government bond was slightly weak in early deals, as the yield rose 2 basis points to 8.88>#/li###