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Rand mauled by risk aversion
July 11, 2011--South African assets were hit by risk aversion on Monday as investors globally got out of emerging market positions.
The rand dropped more than 2%, among the worst performers in 20 emerging markets watched by Reuters, while pressure from a weekly debt auction expected in the next session added to the bond market’s losses.
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Source: FIN24
Bonds remain firm in quiet late trade
July 8, 2011-- South African bonds were still firm in late trade on Friday, with a local trader saying: "We've been around these levels pretty much the whole session, it's dead quiet."
By 15:50, the benchmark R157 bond was trading at 7.395%, from its previous close of 7.415%. The R207 was bid at 8.265% and offered at 8.240% from 8.265%, and the R186 was trading at 8.435% from 8.465%.
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Source: FIN24
JSE negative amid caution over jobs
July 8, 2011--The JSE surrendered its slender gains at opening by midday on Friday amid some caution over nonfarm payrolls data and profit taking, according to a local dealer.
By noon local time, the JSE All Share [JSE:J203] index lost 0.40%, with banks sliding 0.31% and financials down 0.06%. Industrials also dropped 0.29%. Platinum miners slipped 0.94%, gold miners declined 0.50% and resources fell 0.70%.
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Source: FIN24
JSE buoyed by US data
July 7, 2011-- The JSE ended in the black on Thursday, led by resources stocks and buoyed by better than expected US ADP jobs data, along with market friendly comments by European Central Bank president Jean Claude Trichet.
By 17:00 local time, the JSE All Share [JSE:J203] index was up 0.51%, with resources adding 1.17%. Gold miners moved marginally higher by 0.04%, but platinum miners declined 0.07%.
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Source: FIN24
Bonds buoyed by rand, foreign buying
July 7, 2011-- South African bonds maintained their stronger bias and were up to six basis points firmer during late trade on Thursday
A local trader said the stronger rand had boosted the market, and there was a strong appetite for local bonds, especially from foreigners.
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Source: FIN24
Volatile JSE ends on sour note
July 6, 2011--The JSE ended the volatile session lower on Wednesday as a combination of profit-taking, Portugal's downgrade and poor US economic data took a toll on the local market. Gold stocks, however, bucked the trend, putting in a good performance, said Andrew Todd, an equity derivatives trader at Imara SP Reid.
The market, Todd said, had a couple of wild swings today, with knee-gerk reactions to the downgrade of Portugal punctuating increased volatility on the day.
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Source: FIN24
Bonds firmer in thin late trade
July 6, 2011-- South African bonds were firmer in late trade on Wednesday, which a trader said was "probably" due to some late offshore buying.
By 15:50, the benchmark R157 bond was trading at 7.465%, from its previous close of 7.480%. The R207 was bid at 8.335% and offered at 8.310% from 8.345%, and the R186 was trading at 8.545% from 8.560%.
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Source: FIN24
Rainfall, Financial Development, and Remittances: Evidence from Sub-Saharan Africa
July 6, 2011--Summary: We use annual variation in rainfall to examine the effects that exogenous, transitory income shocks have on remittances in a panel of 42 Sub-Saharan African countries during the period 1960-2007.
Our main finding is that these income shocks have a significant positive effect on remittances, but that the effect is significantly decreasing in the share of domestic credit to GDP. So much so, that at high levels of credit to GDP transitory increases in income had a significant negative effect on remittances. Our findings are consistent with the view that remittances take advantage of unexploited domestic investment opportunities that can exist due to domestic credit market frictions. Our findings also support the view that when barriers to financial flows are low, remittances effectively provide insurance against transitory income shocks.
view IMF Working paper-Rainfall, Financial Development, and Remittances: Evidence from Sub-Saharan Africa
Source: IMF
Deutsche Bank lists three Exchange Traded Notes
July 5, 2011--These JSE-listed instruments offer a cost-efficient, convenient and liquid solution for South African investors wishing to invest into Emerging Market regions and countries without utilising their offshore allowances.
The ETNs will track the following Indices:
MSCI Emerging Markets Total Return Index:
This is a free float adjusted market capitalisation index and currently includes companies across 23 Emerging Market countries.
The shares listed in the BRIC countries (Brazil, Russia, India and China) account for approximately 50% of the Index whereas South Africa shares account for approximately 7.5%.
MSCI China Total Return Index:
This is a free float adjusted market capitalisation index and includes approximately 150 companies incorporated in the People's Republic of China (listed in USD on the Shanghai Stock Exchange or the Shenzhen Stock Exchange (in HKD), or listed in HKD on the Hong Kong Stock Exchange).
MSCI Africa Top 50 Capped Total Return Index:
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Source: Deutsche Bank Securities
JSE up a pip in lacklustre trade
July 5, 2011- The JSE closed 176 points in the black on Tuesday in line with a positive trend running through the market in recent sessions.
A dealer noted, however, lacklustre trade ahead of key economic data expected out of the US later in the week, with nonfarm payrolls data in particular expected to generate investor interest.
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Source: FIN24
