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Weak JSE awaits Gordhan budget
October 26, 2010-- The JSE sank on Tuesday in tandem with global equities amid profit taking, hovering around the 30 000 level as the local bourse failed to shake off the negative effects of the strong dollar, which dragged commodity prices down and hurt resources stocks.
Investors are waiting for the unveiling of the medium-term budget framework on Wednesday to see what will be announced about expenditure and revenue, Kevin Algeo, portfolio manager at Imara SP Reid, said.
By 17:00 local time the JSE all share index was 0.43% lower, with gold stocks shedding 0.30%, resources falling 0.64% and platinum miners edging down 1.60%. Financials were 0.20% weaker, banks lost 0.05% and industrials were down 0.33%.
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Source: FIN24
IMF Outlook for Sub-Saharan Africa Looks to Broad-Based Growth in 2010-11
October 25, 2010--The International Monetary Fund (IMF) today released the October 2010 Regional Economic Outlook: Sub-Saharan Africa. Ms. Antoinette Monsio Sayeh, Director of the IMF's African Department commented on the report's main findings:
“The latest Regional Economic Outlook highlights the broad-based economic recovery that is now under way in sub-Saharan Africa. Growth of 5 percent is projected in 2010 and 5½ percent in 2011. Should this prevail, economic growth in most countries in the region would have effectively bounced back to close to the high levels registered in the mid-2000s.
“The region’s resilience owes much to sound economic policy implementation before and during the 2007–09 global financial crisis. This allowed country authorities to use fiscal and monetary policies nimbly to dampen the adverse effects of the sudden shifts in world trade, prices, and financial flows.
“Domestic demand in the region in 2010 and 2011 is expected to remain strong on the basis of rising real incomes and sustained private and public investment. In addition, exports are expected to benefit from the increased orientation of trade toward fast-growing markets in Asia.
“Nevertheless, the global financial crisis has left a legacy of elevated unemployment in some sub-Saharan African countries. Fiscal balances have deteriorated, particularly in the region’s middle-income and oil exporting countries. And because of the fragile nature of the global recovery, risks remain weighted on the downside.
“Looking ahead, the focus of policy needs to shift toward rebuilding the policy buffers that served so well during the crisis. In particular, expansionary fiscal policies will need to be tempered to make sure that public finances return to a sustainable path and public debt levels remain manageable” Ms. Sayeh said
view the report-Regional Economic Outlook: Sub-Saharan Africa Resilience and Risks
Source: IMF
Rand’s rise hits S African trade
October 25, 2010--Deep in the rolling winelands of South Africa’s Western Cape province, Stuart Buchan is preoccupied with issues that also vexed finance ministers at last weekend’s G20 meeting in South Korea. In particular, he frets about the rand’s heady rise against the US dollar.
“We’re exporting about the same volumes as last year but we’re about 20 per cent down on value,” says Mr Buchan, marketing manager of Eikendal Vineyards, which sells wine to Europe and the Americas.
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Source: FT.com
Bonds remain on front foot
October 25, 2010--South African bonds remained on the front foot in late trade on Monday on the back of rand strength.
A local trader said that bonds were up to 5 basis points firmer due to dollar weakness.
By 15:50 the benchmark R157 bond was at 7.190%, from its close of 7.230% on Friday, while the R207 was bid at 7.950% from 7.990% at its previous close. The R186 was bid at 8.030% after closing at 8.080%.
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Source: FIN24
Resources lift JSE higher
October 25, 2010--The JSE edged up on Monday, lifted higher by mining counters that climbed on the back of the weak dollar, which boosted commodity prices. But financial and industrial stocks gave up all the day's gains.
The greenback depreciated against the euro despite pledges by the G20 finance ministers and central bankers aimed at allaying fears over a "currency war", a trader said.
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Source: FIN24
Bonds lose steam; caught long
October 22, 2010--South African bonds were up to 5 basis points weaker in midday trade on Friday. A local trader said that the market was caught long after some foreign selling and players were squaring their positions ahead of the weekend.
By 11:30 the benchmark R157 bond was at 7.235%, from its close of 7.185% on Thursday, while the R207 was bid at 8.015% and offered at 7.985% from 7.955% at its previous close. The R186 was bid at 8.090% and offered at 8.105% after closing at 8.075%.
The rand was bid at 6.9601 to the dollar from its previous close of 6.9739.
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Source: FIN24
JSE slumps ahead of G20 talks
October 22, 2010-- The JSE ended sharply lower on Friday, with investors remaining wary ahead of the Group of 20 (G20) meeting, which is widely expected to tackle the so-called "currency war".
Investors used caution around the G20 meeting as an opportunity to lock up profits following strong gains on Thursday, a dealer said.
By 17:00 local time the JSE all share index was 1.06% lower, with resources falling 1.05%, platinum miners declining 0.69% and gold stocks shedding 0.68%. Financials lost 1.17%, banks were 1.67% weaker and industrials edged down 1.01%
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Source: FIN24
Lower earnings for SA gold mines
October 22, 2010-SOUTH Africa’s major gold groups – AngloGold Ashanti, Gold Fields and Harmony – will all report lower quarterly core earnings for the September quarter, according to JP Morgan Cazenove analysts Steve Shepherd and Allan Cooke.
This is owing to the stronger rand/dollar exchange rate and higher working costs, which will more than offset the record gold price in dollar terms reached during the September quarter.
The analysts said the gold price averaged a record $1,246 per ounce for the quarter - $51/oz or 4% up on the June quarter average of $1,195.
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Source: Miningmx
Longer dated bonds firmer
October 21, 2010--South African longer dated bonds were slightly firmer in quiet midday trade on Thursday, on the back of demand for duration stock.
By 11:34 the benchmark R157 bond was unchanged at 7.160%, from its close on Wednesday, while the R207 was bid at 7.940% and offered at 7.905% from 7.950% at its previous close. The R186 was bid at 8.050% and offered at 8.015% after closing at 8.050%.
The rand was bid at 6.8653 to the dollar from its previous close of 6.9325.
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Source: FIN24
Bonds steady as foreigners hold off
October 21, 2010- South African bonds were steady by the late afternoon on Thursday as tentative global risk appetite curbed demand for higher yielding emerging market assets.
By 16:04 the benchmark R157 bond was at 7.185%, from its close on Wednesday of 7.160%, while the R207 was at 7.940% from 7.950% at its previous close. The R186 was bid at 8.085% after closing at 8.050%.
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Source: FIN24
