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JSE takes a hit after poor US jobs data
August 6, 2010--The JSE finished weaker on Friday as US stocks fell sharply after the release of poor US employment data. A local trader said that concerns over the government's order restricting Lonmin [JSE:LON] from selling associated minerals also weighed on the local bourse.
Dow Jones Newswires reported that US stocks slid as Wall Street did not hide its disappointment over the government's July jobs numbers and investors scrambled into safer positions.
The Dow Jones Industrial Average fell 141 points and risk-averse investors moved into Treasurys, with the yield on the 10-year note touching its lowest level in more than a year.
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Source: FIN24
SA reserves on the rise
August 6, 2010--South Africa's net gold and foreign exchange reserves stood at $38.665bn at the end of July from $38.189bn in June, official data showed on Friday.
Gross reserves rose to $43.159bn from $42.203bn, the central bank said in a statement posted on its website.
Foreign currency reserves went up $1.127bn to $35.723bn while gold reserves decreased by $254m to $4.715bn.
Source: FIN24
Johannesburg Stock Exchange To List Copper And Silver Futures
August 5, 2010--– Today the Johannesburg Stock Exchange (JSE) announced that it has extended its existing licensing agreement with CME Group, the world’s leading and most diverse derivatives exchange, to list rand-denominated copper and silver futures contracts. This latest development gives South African investors further exposure to the international metals mark
While listed on the JSE’s Commodity Derivatives Market and accessible to all JSE Equity Derivative members and their registered clients, both futures contracts will reference benchmark settlement prices from CME Group’s COMEX, the world’s primary market for trading futures on metals such as gold, silver and copper. Contracts are priced and settled in rands with smaller contract sizes compared to the standard COMEX contract to make them more accessible to South African investors.
The introduction of these foreign-referenced metals contracts forms part of the JSE’s continued drive to bring global markets closer to local traders in a way that is both cost-effective and accessible,” says Rod Gravelet-Blondin, Senior General Manager: Commodities at the JSE. The listing of these two metals contracts follows on the JSE’s introduction of gold, platinum and sweet crude oil futures in October 2009 thanks to the licensing agreement with CME Group.
As with the existing foreign-referenced commodity futures, local market participants do not need to open accounts with international brokers or require Reserve Bank clearance to transfer forex to meet margin requirements, as all trade takes place locally. Gravelet-Blondin anticipates strong market appetite for copper and silver futures, “These two highly-traded and industrially important commodities are bound to be of interest to local investors.”
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Source: Johannesburg Stock Exchange (JSE)
Warnings about 'rand tax'
August 3, 2010-- The implementation of a tax on short-term speculative flows should be carefully considered, Absa Capital said in its emerging markets research report on Tuesday.
Their comments follow newspaper reports that the African National Congress is looking at options to make the rand more competitive, including a possible tax on short-term capital flows into the economy to try and curb rand volatility.
South Africa is heavily reliant on capital inflows, which in turn strengthen the rand.
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Source: FIN24
Rand sits in a tight range
July 30, 2010--The rand was range-bound in afternoon trade on Friday amid thin trade.
At 15:41 local time the rand was bid at R7.3200 to the dollar from R7.3196 at Thursday's close. It was bid at R9.5318 to the euro from R9.5660 before and at R11.4222 against the sterling from R11.4109 at its previous close.
The euro was bid at $1.3003 from $1.3077 overnight.
A local dealer said: "It's a typical end of the month market at present, with the rand in a R7.30-38 range, lacking any real direction."
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Source: FIN24
JSE weak amid negative global sentiment
July 30, 2010-- The JSE was mired in red at noon on Friday as negative sentiment weighed on global markets ahead of the release of second-quarter gross domestic product (GDP) data in the US, after a run of disappointing fundamental data which traders say is raising fears of a double dip.
Profit-taking, particularly in the resources and banking sectors, was also adding to the weakness in the local market, traders said.
By 12:00 local time the JSE All-share index had lost 1.40%, with banks off 2.04% and financials down 1.50%.
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Source: Fin 24
Bonds weaker on rand, global caution
July 30, 2010--South African bonds were between three and four basis points weaker in early trade on Friday, in line with a soft rand and a cautious global investment backdrop.
By 12:06 the benchmark R157 bond was at 7.635% after closing at 7.590% on Thursday and the 10-year R207 was at 8.320% from 8.290% previously. The long-term R186 was at 8.545% from 8.530% at its previous close.
The rand was bid at R7.3407 to the dollar from R7.3196 at its previous close.
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Source: FIN24
World Bank fingers SA labour costs
July 30, 2010--South Africa is not attracting enough foreign investment to tackle high unemployment and poverty, the World Bank said on Thursday, citing high labour costs as a key deterrent
"South Africa is attracting far less foreign direct investment and exporting less industrial output than many countries in the same peer group," a report said.
The investment climate report compared the country with other emerging economies such as Brazil, India and China.
High labour costs and low manufacturing productivity were holding back to the economy, it said, in a country where unions demand salary hikes more than double the rate of inflation.
SA inflation lower than expected
July 28, 2010-- The increase in South Africa's consumer price index (CPI), which is used by the Reserve Bank for its inflation target, was 4.2% year-on-year in June, down from 4.6% in May, Statistics SA said on Wednesday
It remains well within the target band of between 3% and 6%.
CPI was at 0.0% month-on-month from 0.2% in May.
CPI was expected to have decreased to 4.5% y/y, according to a survey of leading economists by I-Net Bridge, with forecasts among the 10 economists ranging from 4.3% to 4.7%.
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Source: FIN24
Long bonds come a little unstuck
July 23, 2010--South African bonds remained weak during the morning session on Friday as the unchanged rates stance of Thursday continued to lead to long positions being unwound.
By 12:06 the benchmark R157 bond was yielding 7.750% after closing at 7.655% on Thursday and the 10-year R207 was at 8.540% from 8.500% previously. The long-term R186 was at 8.845% from 8.785% at its previous close.
The rand was bid at R7.4274 to the dollar from R7.4347 at its previous close.
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Source: FIN24