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Poor Macroeconomic Outlook Dampens Single Currency Prospect for W' Africa
Janaury 15, 2013--Prospects for the proposed take-off of a single currency regime by 2015 remained blurred as none of the six member countries of the West African Monetary Zone (WAMZ) including Nigeria, satisfied the required macroeconomic convergence criteria last year.
The drive towards the adoption of a single currency regime in the West African sub-region was originally fixed for 2003 but this had been postponed three times largely because of “mixed” progress among member countries in attaining the set criteria.
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Source: This Day Live
South Africa's gold output fell by 32.2% in November
Data released by Statistics South Africa shows that gold output fell by 32.2% in volume terms in November 2012, highlighting the impact of illegal strikes.
January 15, 2013--South Africa's gold output fell by 32.2% in volume terms in November, highlighting the impact of illegal strikes, while total mineral production rose 1.1% compared with the same month last year, data showed on Tuesday.
Production of non-gold minerals was 4.5% lower, Statistics South Africa said. Production of platinum group metals climbed 3% in November.
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Source: MineWeb
Retailers weigh on JSE
January 15, 2013--The JSE closed Tuesday's session in the red with platinums making gains due to potential supply constraints, while retailers took a beating on market expectations that retail earnings could be lower than previously expected.
At 17:00‚ the All Share [JSE:J203] index was down 0.58% to 40 144.07 points‚ with the Top 40 - (Tradeable) [JSE:J200] index dropping 0.46% to 35 508.01 points‚ while the platinum index lifted 1.33% and retailers shed 3.79%. Banks were also hard hit with the index giving up 1.59%.
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Source: FIN24
Negative sentiment keeps rand weaker
January 15, 2013--The rand experienced losses across the board at midday on Tuesday, with political factors still having an effect on market sentiment.
“The weakness continues to be driven by two main things: failure to resolve the farm strikes in the Western Cape and overhang from the downgrade last week‚” said Mark Kalkwarf a senior portfolio manager at the Iquad Group
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Source: FIN24
IMF Working paper-Bond Markets in Africa
January 14, 2013--Summary: African bond markets have been steadily growing in recent years, but nonetheless remain undeveloped. African countries would benefit from greater access to financing and deeper financial markets.
This paper compiles a unique set of data on corporate bond markets in Africa. It then applies an econometric model to analyze the key determinants of African government securities market and corporate bond market capitalization. Government securities market capitalization is directly related to better institutions and interest rate volatility, and inversely related to the fiscal balance, higher interest rate spreads, exchange rate volatility, and current and capital account openness. Corporate bond market capitalization is directly linked to economic size, the level of development of the economy and financial markets, better institutions, and interest rate volatility, and inversely related to higher interest rate spreads and current account openness. Policy implications follow.
view the IMF Working paper-Bond Markets in Africa
Source: IMF
Industrials, platinums weigh on JSE
January 14, 2013--The JSE ended slightly lower on Monday, dragged down by platinum stocks and the broad sell-off in the retail sector following Shoprite Holdings' trading update.
At 17:00‚ the All Share [JSE:J203] index was down 0.34% to 40 144.07 points‚ with the Top 40 - (Tradeable) [JSE:J200] index edging down 0.33% to 35 673.42‚ while the platinum and industrial indices shed 1.10% and 0.87%‚ respectively.
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Source: FIN24
Bonds in demand after Fitch downgrade
January 14, 2013--Government bonds rallied on Monday, pushing the yield on the 13-year benchmark to a 6-month low as demand resumed after a sell-off last week prompted by a downgrade from Fitch.
The rand also pulled back from last Friday's 5-week low against the dollar, although a renewed bout of selling could easily set it back on track towards last November's volatile 8.80-9.01 range.
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Source: FIN24
Top 40 index hits another record
January 14, 2013--South Africa's benchmark Top 40-(Tradeable) [JSE:J200] stock index hit a record high on Monday, edging up 0.3% on a rise in mining companies African Rainbow Minerals [JSE:ARM] and Exxaro Resources [JSE:EXX].
The Top 40 touched 35 947.93, the highest in its 17-year history.
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Source: FIN24
Gold counters gain on weaker rand
January 11, 2013--The JSE closed flat on Friday with gold miners the biggest gainers because of the weaker rand after the Fitch downgrade.
“The rand downgrade yesterday put pressure on our local currency and caused negativity in the rest of the market. Resources suffered today as a result causing a sell-off of riskier assets such as commodities. There was a general sell-off across the market‚ with commodities dipping the most as they form the biggest part of our economy. The JSE traded slightly in the red the whole day‚” a local trader said.
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Source: FIN24
Rand weakens further on Fitch cut
January 11, 2013--Political risk continued to weigh on the rand on Friday afternoon, with concerns over the downgrade by Fitch being the primary driver of slower trade.
“This afternoon it’s been pretty quiet. The downgrade was definitely the trigger that set the rand to a lower level‚” said Ockert van Niekerk‚ head of trading at PSG.
At 3:11‚ the rand was bid at R8.7055/$ from its previous close of R8.6566/$. The local currency was bid at R11.5385/€ from its previous close of R11.4872/€ and at R14.0135/€ against sterling from R13.9807 before.
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Source: FIN24
