JSE down, investors hung up over Telkom
February 14, 2012--South African stocks ended 0.29% lower on Tuesday, undermined by investors banking profits for resource companies such as Anglo American.
Telkom declined 2.7% to R27.45 after the competition regulator asked that the fixed-line operator be fined R3.5bn ($454m) for excessive pricing dating back to 2004.
The Competition Tribunal, which adjudicates on such complaints, is currently hearing arguments from both Telkom and the Competition Commission, South Africa's anti-trust regulator.
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Source: FIN24
Bonds off worst levels after auction
February 14, 2012--South African bonds were in weaker territory during midday trade on Tuesday, but off the sessions worst levels after the weekly government bond auction.
The National Treasury received bids totalling R2.12bn for R500m worth of R204 bonds at a clearing yield of 7.490%, R2bn for R500m worth of R207 bonds at a clearing yield of 7.735% and R2.59bn for R1.1bn worth of R213 bonds at a clearing yield of 8.690%.
At 11:50, the benchmark R157 bond was trading at 6.600%, from its previous close of 6.565%. The R207 was bid at 7.765% and offered at 7.735% from a previous close of 7.745% and the R186 was trading at 8.290% from its close of 8.230%.
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Source: FIN24
Rand tracks listless euro
February 14, 2012--The rand remained softer against the dollar in late afternoon trade on Tuesday as it tracked a listless euro.
"There's been a little bit of fall out on Moody's decision to downgrade six eurozone countries and what we're seeing is a technical clear-out on the rand," an analyst said.
He added that he was still bullish on the local currency.
"The Moody's downgrades were not a surprise and were to some extent priced into the markets."
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Source: FIN24
JSE rises, resources rebound
February 13, 2012--South African stocks rose 1% on Monday, led by resource firms such as diversified miner Anglo American, after Greece's parliament approved sweeping austerity measures that reassured equity markets around the world.
Global stock markets sighed in collective relief after Greek lawmakers assented to deeply unpopular austerity measures that were required before the European country can secure a second rescue package and the money it needs to meet debt repayments.
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Source: FIN24
Rand stays firm as euro holds on to gains
February 13, 2012--The rand remained firmer against the dollar in late afternoon trade on Monday as it tracked a euro that had held on to earlier gains on the news of the Greek approval of austerity measures.
"Today we recovered fairly nicely after that SA Reserve Bank media notification on Friday caused the markets to take fright," a local currency trader said, referring to the announcement which turned out not to have been market moving, but merely news that the appearance of SA's banknotes would change.
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Source: FIN24
Mines nationalisation not SA policy - Zuma
February 10, 2012--President Jacob Zuma squashed more than two years of talk on Friday about the nationalisation of South Africa's massive mining sector, saying state control or ownership of the mines in the world's biggest platinum producer could not work.
Asked during a televised breakfast briefing if the government planned to nationalise mines, Zuma said emphatically: “We’re very clear. It is not our policy. We’ve been saying this inside the country, outside the country. It cannot be.”
“We have answered this question many times. We are very clear,” he added. “Our policy is mixed economy.”
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Source: FIN24
JSE slides at close, led by miners
February 10, 2012--The JSE slid at the close of trade on Friday, led by general mining counters, amid global risk aversion.
At 17:00 local time, the JSE All Share [JSE:J203] index was down 1.10% to 33 892.58 points, with the resource counters sliding 1.99%; the gold index dipped 0.27% and platinum shares lost 1.44%.
Industrials edged down 0.42%, financials slid 1.13%, and banks tumbled 1.61%.
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Source: FIN24
Rand tumbles on jittery euro
February 10, 2012--The rand tumbled against the dollar in late afternoon trade on Friday as the local currency tracked a jittery euro and as the SA Reserve Bank disclosed that it would make an announcement of national importance on Saturday afternoon.
"We can thank our friends in Greece for most of the rand's troubles - it took only one minor opposition party to dislike the debt deal and then we have this announcement in Pretoria tomorrow - things felt uncomfortable as soon as that news came out," a local rand trader said.
At 18:00 local time, the rand was bid at R7.7358 to the dollar from its previous close of R7.5803. It was bid at R10.2025 to the euro from R10.0748 before, and at R12.1720 against sterling from R11.9938 previously.
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Source: FIN24
Bonds weaker on rand, offshore sales
February 9, 2012--South African bonds were mostly weaker in midday trade Thursday.
"We are quite a bit weaker, obviously with the rand a touch higher, but it sounds as though there's been some offshore selling - so I think there's been some profit taking from that side. The locals have been pretty quiet," a trader said.
At 11:50, the benchmark R157 bond was trading at 6.595%, from its previous close of 6.570%. The R207 was bid at 7.785% and offered at 7.810% from a previous close of 7.745% and the R186 was trading at 8.260% from its close of 8.215%.
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Source: FIN24
JSE edges up, but Kumba shines
February 9, 2012--South African stocks edged higher for the second straight session on Thursday, adding just 0.13% as caution about the euro zone kept investors from pushing prices higher after the recent record run.
But Kumba Iron Ore defied the sluggish overall trend, as a better-than-expected dividend and continued optimism about the outlook for resources sent the company to a record high.
“Investors need a catalyst for either a move higher or lower and Greece is definitely a hot topic again,” said Devin Shutte a trader at brokerage Newstrading.
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Source: FIN24