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Rate cut hopes keep bonds firm
October 29, 2010--South African bonds remained firm in midday trade on Friday. A local trader said that bonds were being spurred on by positive data releases which all point to a rate cut in November.
By 12:00 the benchmark R157 bond was at 7.065% from its close of 7.095% on Thursday, while the R207 was bid at 7.840% and offered at 7.830% from 7.875% at its previous close. The R186 was bid at 8.040% and offered at 8.030% after closing at 8.070%.
The rand was bid at 7.0200 to the dollar from its previous close of 6.9900.
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Source: FIN24
JSE down, caution ahead of US GDP
October 29, 2010--The JSE was modestly weaker at noon on Friday, with light trading volumes indicating caution ahead of the release US GDP data later today and the US Federal Reserve's policy meeting on Tuesday. Only gold stocks remained resilient.
By noon local time the JSE all share index was 0.35% weaker, with resources falling 0.77% and platinum miners declining 0.90%. But gold stocks gained 0.47%. Industrials lost 0.08%, financials shed 0.10% and banks were down 0.17%.
The rand was bid at 7.01 to the dollar from 6.99 at the JSE's close on Thursday. Gold was quoted at US$1 336.50 a troy ounce from $1 332.07/oz at the JSE's previous close, while platinum was at $1 686.00/oz from $1 682/oz before.
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Source: FIN24
Bonds firm on rand; rate cut hopes
October 28, 2010-- South African bonds were on the front foot in late trade on Thursday on the back of a strong rand and on increased expectations of a rate cut.
By 15:50 the benchmark R157 bond was at 7.090% from its close of 7.200% on Wednesday, while the R207 was bid at 7.885% and offered at 7.855% from 7.950% at its previous close. The R186 was bid at 8.070% and offered at 8.040% after closing at 8.090%.
The rand was bid at 6.9927 to the dollar from its previous close of 7.0640.
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Source: FIN24
Absa Capital to Start First Gold Exchange Traded Funds in Nigeria, Kenya
October 27, 2010--Absa Capital, a unit of South Africa’s Absa Group Ltd., said it may start the first gold- backed exchange-traded funds in Kenya and Nigeria.
“Absa Capital is in talks with the Nigerian Stock Exchange to potentially secondary list our NewGold exchange-traded fund,” Vladimir Nedeljkovic, the Johannesburg-based investment bank’s principal for ETFs and index products, said today. He is in Kenya to discuss starting the ETF in the East African nation.
NewGold, which has its main listing on South Africa’s JSE Ltd., is the largest gold ETF in Africa’s biggest economy, with more than $2 billion in assets. Earlier this year, Absa Capital, listed NewGold on the Botswana Stock Exchange.
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Source: Bloomberg
JSE ignores budget, eyes Fed
Octoer 27, 2010--The JSE closed lower across the board on Wednesday, dipping below the 30 000 mark as it closely tracked global equities, which are jittery ahead of the US Federal Reserve's meeting next Tuesday which are expected to reveal details of the anticipated fresh round of quantitative easing.
On the local front, the market did not react negatively to the Medium Term Budget Policy Statement (MTBPS), which indicated that economic growth had been revised higher and budget deficit lower, Kevin Algeo, portfolio manager at Imara SP Reid, said.
By 17:00 local time the JSE all share index was 0.59% lower, with gold stocks shedding 1.11%, resources falling 0.87% and platinum miners edging down 0.84%. Financials were 0.68% weaker, banks lost 1.00% and industrials were down 0.28%.
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Source: FIN24
Bonds follow rand; neutral on MTBPS
October 27, 2010-- South African longer dated bonds were weaker in late trade on Wednesday following the weaker currency.
A local trader said that bonds were neutral following the Medium Term Budget Policy Statement (MTBPS), which he said didn't contain any real surprises.
By 15:50 the benchmark R157 bond was unchanged from its close at 7.200% on Tuesday, while the R207 was bid at 7.990% and offered at 7.930% from 7.935% at its previous close. The R186 was bid at 8.090% and offered at 8.090% after closing at 8.050%.
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Source: FIN24
Rand shrugs off 'damp squib' budget
Octobe 27, 2010--The South African rand was off only a fraction against the dollar in afternoon trade as the Medium Term Budget Policy Statement (MTBPS), delivered by Finance Minister Pravin Gordhan contained few surprises.
The local currency broke through 7.00 against the dollar in early morning trade on Wednesday for the first time in three weeks, and continued to flirt with that level into the afternoon session.
At 14:28 local time the rand was bid at 7.0237 to the dollar from 6.9379 at the previous close. It was bid at 9.7078 to the euro from 9.6072 before and at 11.1241 against sterling from 10.9809 at its previous close.
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Source: FIN24
Bonds weaker on rand
October 26, 2010--South African bonds were weaker in late trade on Tuesday on the back of the weaker currency.
By 15:50 the benchmark R157 bond was at 7.195%, from its close of 7.180% on Monday, while the R207 was bid at 7.945% and offered at 7.915% from 7.925% at its previous close. The R186 was bid at 8.050% and offered at 8.035% after closing at 8.030%.
The rand was bid at 6.9403 to the dollar from its previous close of 6.9051.
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Source: FIN24
Weak JSE awaits Gordhan budget
October 26, 2010-- The JSE sank on Tuesday in tandem with global equities amid profit taking, hovering around the 30 000 level as the local bourse failed to shake off the negative effects of the strong dollar, which dragged commodity prices down and hurt resources stocks.
Investors are waiting for the unveiling of the medium-term budget framework on Wednesday to see what will be announced about expenditure and revenue, Kevin Algeo, portfolio manager at Imara SP Reid, said.
By 17:00 local time the JSE all share index was 0.43% lower, with gold stocks shedding 0.30%, resources falling 0.64% and platinum miners edging down 1.60%. Financials were 0.20% weaker, banks lost 0.05% and industrials were down 0.33%.
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Source: FIN24
IMF Outlook for Sub-Saharan Africa Looks to Broad-Based Growth in 2010-11
October 25, 2010--The International Monetary Fund (IMF) today released the October 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 latest Regional Economic Outlook highlights the broad-based economic recovery that is now under way in sub-Saharan Africa. Growth of 5 percent is projected in 2010 and 5½ percent in 2011. Should this prevail, economic growth in most countries in the region would have effectively bounced back to close to the high levels registered in the mid-2000s.
“The region’s resilience owes much to sound economic policy implementation before and during the 2007–09 global financial crisis. This allowed country authorities to use fiscal and monetary policies nimbly to dampen the adverse effects of the sudden shifts in world trade, prices, and financial flows.
“Domestic demand in the region in 2010 and 2011 is expected to remain strong on the basis of rising real incomes and sustained private and public investment. In addition, exports are expected to benefit from the increased orientation of trade toward fast-growing markets in Asia.
“Nevertheless, the global financial crisis has left a legacy of elevated unemployment in some sub-Saharan African countries. Fiscal balances have deteriorated, particularly in the region’s middle-income and oil exporting countries. And because of the fragile nature of the global recovery, risks remain weighted on the downside.
“Looking ahead, the focus of policy needs to shift toward rebuilding the policy buffers that served so well during the crisis. In particular, expansionary fiscal policies will need to be tempered to make sure that public finances return to a sustainable path and public debt levels remain manageable” Ms. Sayeh said
view the report-Regional Economic Outlook: Sub-Saharan Africa Resilience and Risks
Source: IMF
