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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
Rand tracks weaker euro
July 23, 2010--The rand was a fraction softer in afternoon trade on Friday tracking the euro, ahead of crucial EU bank stress test results.
At 15:28 local time the rand was bid at R7.4578 to the dollar from R7.4347 at Thursday's close. It was bid at R9.5465 to the euro from R9.5829 before and at R11.4624 against the sterling from R11.3357 at its previous close.
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Source: FIN24
JSE edges higher in cautious trade
July 23, 2010--South African stocks edged higher on Friday in cautious trade ahead of European stress test results while the rand hovered near three-month highs against the dollar after the central bank decided not to cut rates the previous day.
The JSE top-40 index of blue chips rose 0.56% to 25 333.32, its highest close since May 4 while the broader all-share index inched up 0.53% to 28 424.17.
"There's caution in the market ahead of these bank stress tests in Europe," said Martin Lentsoane, a trader at Johannesburg-based NEWS Trading.
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Source: FIN24
S Africa wakes up to reality after World Cup
July 21, 2010--Just 10 days ago, Mary Muthui was doing a roaring trade in football scarves, beanie hats and vuvuzelas at her stall in the Rosebank Mall crafts centre in northern Johannesburg. But – less than two weeks after the end of South Africa’s much acclaimed World Cup – the 28-year-old trader was struggling to unload anything at all and was offering the controversial plastic horn for a quarter of the R120 ($16, €12, £10) that football fans were paying last month. “It’s very, very slow,” she said. “I have sold less than 50 vuvuzelas since the final.”
The gloom at the mall seems to reflect a broader shift in mood since the end of South Africa’s football fiesta. Although it was entirely predictable that restaurants, hotels and craft businesses such as Ms Muthui’s would see a fall-off in business, there are other concerns too. The economy – boosted by World Cup fever – seems to have hit a bump, with signs that manufacturing has been hit by the downturn in Europe and fears that slower growth in China could reduce demand for South African iron, coal and precious metal exports.
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Source: FT.com
Nigeria moves to create ‘bad bank’
July 19, 2010--Nigeria took a step closer to resolving its financial crisis on Monday when Goodluck Jonathan, president, approved the creation of a “bad bank” to soak up some of the estimated $10bn of bad loans that brought the banking system to the brink of collapse last year.
Almost a year after Nigeria’s once-booming banking sector was rocked by revelations of reckless lending gone awry, Mr Jonathan backed a public asset management company similar to those employed by Ireland and other crisis-hit rich countries.
The creation of the bank marked “an important turning point for the return to strong economic growth and financial system stability”, Mr Jonathan said.
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Source: FT.com
Bonds tad firmer on short-covering
July 16, 2010-- South African bonds were slightly firmer in late trade on Friday, which dealers attributed to a bit of short-covering.
By 15:50 the short-term government R154 bond was bid at 6.590% after closing at 6.530% on Thursday and the medium-term R157 was at 7.730% from 7.755% at its previous close.
The long-term R186 was bid at 8.900% from 8.915% at its previous close.
The rand was bid at R7.5832 to the dollar from R7.5259 at its previous close.
"It's been very quiet today, but bonds have firmed slightly on some short covering going into the weekend," said a local trader.
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Source: FIN 24
