UPDATE 1-South African rand, stocks stronger before Fed outcome

Published: 2022-01-26 tag: industry, materials and utilities

(Updates to reflect afternoon trade)

JOHANNESBURG, Jan 26 (Reuters) - The South African rand strengthened on Wednesday as global risk appetite improved before the outcome of a closely watched U.S. Federal Reserve meeting.

The Fed is due to update its policy plan at 1900 GMT after a two-day meeting. Markets currently see a first rate increase in March and three more quarter-point increases by year-end.

At 1430 GMT, the rand traded at 15.1800 against the dollar, around 0.4% stronger than its previous close.

Also supporting the rand, the South African Reserve Bank (SARB) is widely expected to raise rates on Thursday at its first policy meeting of 2022. Economists polled by Reuters predict a 25-basis-point increase in the repo rate to 4.00% in what would be the second successive increase after one in November to fight rising inflation.

“The SARB is ... expected to pull the trigger on a 25-basis-point rate hike and provide hawkish forward guidance tomorrow,” ETM Analytics said in a research note.

Shares on the local bourse firmed after four consecutive days of declines as investors awaited the Fed update.

The benchmark all-share index was up 2.05% to 73,797 points, while the blue-chip index of top 40 companies ended up 2.27% at 67,364 points.

The broad-based rally, which was in sync with most global markets, was led by commodity and mining companies, with the mining index ending up 3.25%.

Petrochemicals major Sasol Ltd was one of the top performers with the company’s shares rising by over 7%, helped by an increase in crude oil price.

The government’s benchmark 2030 bond edged higher, with the yield falling 1 basis point to 9.35%. (Reporting by Promit Mukherjee and Alexander Winning Editing by Mark Potter)

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.