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Rate cuts comments hurt bonds
April 23, 2010--Bond yields weakened by between 6.5 and 18 basis points on Thursday after South African Reserve Bank governor Gill Marcus said that the scope for a further easing in rates was limited.
A sharply weaker rand and some profit-taking also added to the weakness.
By 16:05 the short-term government R154 bond was bid at 6.655% and offered at 6.635% after closing at 6.455% on Wednesday, and the medium-term R157 was at 7.795% from 7.700% at its previous close. The long-term R186 was bid at 8.750% and offered at 8.725% from 8.660% previously.
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Source: FIN24
IMF Outlook for Sub-Saharan Africa Is Optimistic about Growth Prospects
April 23, 2010--The International Monetary Fund (IMF) today released the April 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 economic slowdown in sub-Saharan Africa looks set to be mercifully brief. Output is projected to expand by 4¾ percent in 2010, compared to 2 percent in 2009. Provided the global economy continues to improve, growth in the region should accelerate further still to 5¾ percent in 2011.
“The impact of the global financial crisis on countries in the region was quite varied. Output levels in most middle-income countries were dragged down by the sharp fall in export volumes in early 2009 as world demand collapsed. Growth in oil-exporting countries also decelerated sharply, partly reflecting the drop in oil prices. In contrast, many low-income countries escaped fairly lightly, with some fragile economies actually experiencing a small acceleration in output growth in 2009.
“The relatively limited nature of the region’s slowdown owes much to the health of the region’s economies heading into 2008–09 and the countercyclical macroeconomic policies that were pursued in many countries. Nearly two-thirds of countries experiencing a slowdown in 2009 were able to increase government spending to buttress economic activity. Policy interest rates were also reduced in most countries. .
view report-Regional Economic Outlook: Sub-Saharan Africa
Investors drive JSE lower The rand was bid at R7.35 to the dollar from R7.29 at the JSE's close on Thursday. Gold was quoted at $1 156.43 a troy ounce from $1,159.91/oz at the JSE's last close. Platinum was at $1 721/oz from $1 717/oz at the JSE's last close.
After opening softer on Friday, the JSE continued to trade lower on profit-taking.
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Rand follows weak euro
The euro was bid at $1.3510 from $1.3571 previously.
Foreign buyers boost bonds
The rand was bid at R7.36 to the dollar from R7.2933 at its previous close. read more
JSE lifted by global counterparts
Banks were 1.55% firmer, financials added 1.04% and the industrial index picked up 0.78%.
The rand was bid at 7.25 to the dollar, from 7.27 at the JSE's close on Thursday.
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Bonds firmer heading into weekend
The rand was bid at 7.2322 to the dollar from 7.2512 at its previous close.
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Softer rand in a range
The euro was bid at $1.3386 from $1.3358 previously.
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Treasury Department Statement on the U.S. Position on the World Bank’s Eskom Investment Support Project Despite these benefits, the United States is concerned about the project since it would produce significant greenhouse gas emissions, and uncertainty remains about future mitigation efforts. Without actions to offset the carbon emissions of the Medupi plant, the project is incompatible with the World Bank's strategy to help countries pursue economic growth and poverty reduction in ways that are environmentally sustainable. We also remain concerned about other facets of the project, including the inconsistency of Eskom's procurement process with the World Bank's Procurement Guidelines, deficiencies in the environmental impact assessment, and potentially inadequate efforts to mitigate local pollution. The project is also inconsistent with new guidelines on coal lending adopted by the United States in December 2009.
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Bonds rally ahead of Easter read more
Source: IMF
April 16, 2010--The JSE was lower in noon trade on Friday as investors cashed in on this week's good run.
At 12:00 the JSE all share index was off 0.49%, with resources 0.79% softer, gold miners off 0.83% and platinum miners 0.74% weaker. Banks were 0.17% lower, financials dipped 0.12%, while the industrial index edged down 0.44%.
The rand was bid at R7.35 to the dollar from R7.29 at the JSE's close on Thursday. Gold was quoted at $1 156.43 a troy ounce from $1,159.91/oz at the JSE's last close. Platinum was at $1 721/oz from $1 717/oz at the JSE's last close.
After opening softer on Friday, the JSE continued to trade lower on profit-taking.
At 12:00 the JSE all share index was off 0.49%, with resources 0.79% softer, gold miners off 0.83% and platinum miners 0.74% weaker. Banks were 0.17% lower, financials dipped 0.12%, while the industrial index edged down 0.44%.
Source: FIN24
April 16, 2010--The rand remained on the back foot on Friday afternoon as the euro succumbed one again to worries over the Greek debt situation.
At 15:50 the rand was bid at R7.36 to the dollar from R7.2933 at its previous close. It was bid at R9.9696 to the euro from its previous close of R9.9022 and was at R11.3712 against the sterling from R11.2750.
Source: FIN24
April 16, 2010--Bonds remained up to eight basis points firmer in late trade on Friday with traders attributing the strength to strong foreign buying which has dominated trade this week.
By 15:45 the short-term government R154 bond was bid at 6.540% and offered at 6.675% after closing at 6.605% on Thursday and the medium-term R157 was bid at 7.775% and offered at 7.765% from 7.850% at its previous close. The long-term R186 was bid at 8.750% and offered at 8.730% from 8.775% previously.
Source: FIN24
April 9, 2010--The JSE ended firmly in the black on Friday amid positive global sentiment and firm commodity prices.
At 17:00, the JSE all share index was up 1.13%, with resources 1.49% firmer and platinum miners gaining 1.24%. Gold miners found 1.16%.
Source: FIN24
April 9, 2010--South African bonds were firmer heading into the weekend late on Friday, boosted by a firmer rand and the World Bank's approval of a $3.75bn lifeline to power utility Eskom.
By 16:00 the short-term government R154 bond was bid at 6.720% and offered at 6.840% from 6.740% at its previous close and the medium-term R157 was at 7.945% from 7.970% at its previous close. The long-term R186 was bid at 8.795% and offered at 8.765% from 8.810% previously.
Source: FIN 24
April 9, 2010--As expected, the rand bounced off R7.20 against the dollar in the afternoon session on Friday however, the local currency maintained its range of R7.20-R7.30.
At 15:32 the rand was bid at R7.2671 to the dollar from R7.2512 at its previous close. It was bid at R9.7202 to the euro from its previous close of R9.6795 and was at R11.1323 against the sterling from R11.0634.
Source: FIN 24
April 8, 2010--Today, the United States abstained on the vote by the World Bank's Board of Directors on the Eskom Investment Support Project. This reflects concerns about the climate impact of the project and its incompatibility with the World Bank's commitment to be a leader in climate change mitigation and adaptation. At the same time, the United States recognizes South Africa's pressing energy needs and the lack of near-term feasible low-carbon alternatives.
South Africa and the region face urgent energy needs to promote economic growth and address critical challenges, such as poverty, education and health. This project would provide significant energy capacity to meet these essential needs. We recognize that South Africa faces limited options that could provide the required energy base for South Africa and the region in lieu of the project, and that there is a lack of alternative private financing options in the wake of the financial crisis. We also recognize that, if South Africa's base load power needs are not met, the country's economic recovery will suffer, adversely impacting electrification, job creation, and social indicators.
Source: U.S. Department of the Treasury.
April 2, 2010-- Bonds rallied on Thursday on the back of a strong rand and short-covering, going into the Easter weekend between 10.5 and 12.5% basis points firmer.
By 16:10 the short-term government R154 bond was bid at 6.610% and offered at 6.640% after closing at 6.715% on Wednesday and the medium-term R157 was at 7.835% from 7.945% at its previous close. The long-term R186 was at 8.680% from 8.805% previously.
Source: FIN24
