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Brokers resist Nigerian watchdog
June 7, 2010--The new head of Nigeria’s stock market regulator is encountering “subtle and aggressive” resistance to efforts to root out brokers whose alleged abuses contributed to a $50bn crash that brought the financial sector close to collapse.
Arunma Oteh, who took over at the Securities and Exchange Commission in January, is battling to impose tougher oversight and increased disclosure to restore confidence in what was once viewed as a prime frontier market.
But some financiers who stand to lose lucrative trading licences are said to be applying pressure to thwart an SEC investigation aimed at establishing whether brokers misused investors’ funds and are in effect insolvent. Some financiers were seeking to use close ties to politicians to stall the investigation, suppress its findings or undermine Ms Oteh, allies said.
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Source: FT.com
SA ranked no better than Greece
June 7, 2010--South Africa may be financially sound, but it will struggle to benefit from the sovereign debt crisis in Europe.
Rating agencies rank South Africa no better than Greece, Portugal, Spain, Ireland or Italy, the so-called PIIGS nations where government debt is dangerously high.
Rating agency Moody’s equates South Africa to Greece at A3 in terms of long-term debt, even though South Africa has balanced its budget for many years.
In addition, government debt in South Africa is 36% of gross domestic product, far lower than the 128% expected for Greece this year.
All of the major grading agencies rank South Africa lower than Portugal, Spain and Italy - each of which has massive debt and is in danger of dragging the eurozone into more trouble.
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Source: FIN24
Rand range bound in thin trade
June 4, 2010--The rand was still range-bound in midday trade on Friday amid low liquidity levels ahead of the weekend. A local trader said the local unit was eyeing the euro vs dollar movement, which was almost unchanged from Thursday's levels.
At 11:40 the rand was bid at R7.6471 to the dollar from R7.6581 at its previous close. It was bid at 9.3355 to the euro from its previous close of R9.3313 and was at R11.2196 against sterling from R11.2061.
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Source: FIN24
JSE flat ahead of US payrolls
June 4, 2010--The JSE was only a tad lower in midday trade on Friday ahead of key US nonfarm payrolls data.
By 12:00 the JSE all share index declined 0.11%, with resources down 0.66%, and platinum miners down 0.78%. Gold miners lost 1.76%. Banks were 0.76% stronger, financials added 0.38%, and industrials were 0.17% firmer.
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Source: FIN24
Bonds subdued on steady rand
June 4, 2010--Trading in bonds was thin across the board in midday trade on Friday as they tracked a steady rand.
By 11:41 the short-term government R154 bond was bid at 6.750% after closing at 6.730% on Thursday and the medium-term R157 was at 7.985% from 8.000% in early trade and 7.980% at its previous close.
The long-term R186 was at 8.965% from 8.930% previously. The long-term R186 was at 8.965% from 8.930% previously.
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Source: FIN24
Debt market shows optimism about SA
June 3, 2010--The SA government has created some much-needed breathing room at the top end of the local bond market after launching two new long bonds.
And the assessment from the market is that the issuance has received plenty of interest from asset managers running annuity books, with the demand a clear thumbs-up on the health of the debt market at a time when global markets languish.
The 2031 R213 was launched last week, while the 2041 hit the market on Tuesday at a yield of 8.82%.
Victor Mphaphuli, a bond analyst and portfolio manager at Stanlib, says this yield is competitive as it is 8-9 points through (stronger than) the 2036 R209 bond. The R209 is a good comparator to use as it matures in 2036 and was last yielding 8.89%.
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Source: FIN24
Economy recovering faster than expected
May 31, 2010--South Africa's economy is recuperating faster than expected, according to analysts Moody's Economy.com.
They point out that the latest national accounts data showed that gross domestic product (GDP) growth quickened to a seasonally adjusted annual rate of 4.6% in the opening months of 2010, from 3.2% in the fourth quarter and 0.9% in the third. On a year-ago basis, the economy expanded 1.6%.
"The factory sector, which is sensitive to the global business cycle, has powered the rebound in each of the past three quarters thanks to improved external demand and inventory replenishment. Mining and quarrying, another economic driver, was the second largest contributor to growth in the first quarter as output of coal and other ores rose," the analysts note.
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Source: FIN24
Bonds remain firm on stronger rand
May 28, 2010--Bonds remained firm by midday Friday as the stronger rand lured foreign investors back into the local bond market.
By 11:50 the short-term government R154 bond was bid at 6.735% and offered at 6.715% after closing at 6.750% on Thursday and the medium-term R157 was at 7.980% from 8.000% at its previous close. The long-term R186 was bid at 8.875% and offered at 8.845% from 8.860% previously.
The rand was bid at R7.5717 to the dollar from R7.5780 at its previous close.
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Source: FIN24
JSE lower on profit-taking
May 28, 2010--The JSE was slightly lower in midday trade on Friday on the back of profit taking and a strong rand, defying the generally positive sentiment among global markets.
By 12:00 the JSE all share index was down 0.11%, with resources lower at 0.40%, and platinum miners 0.19% down. Gold miners shed 1.29%. But banks climbed 0.60% and financials added 0.43%. Industrials shed 0.13%.
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Source: FIN24
Euro strength adds to steady rand
May 28, 2010- The rand was steady in afternoon trade on Friday, holding up against the dollar,
aided by a stronger euro.
At 15:24 the rand was bid at R7.5981 to the dollar from R7.5780 at its previous close. It was bid at R9.3999 to the euro from its previous close of R9.3691 and was at R11.0592 against sterling from R11.0379.
The euro was bid at $1.2362 from $1.2345previously.
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Source: FIN24
