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Bonds flat in late trade
July 9, 2010--South African bonds were flat in late trade on Friday, pretty much unchanged from earlier levels.
By 15:55 the short-term government R154 bond was bid at 6.515% after closing at 6.500% on Thursday and the medium-term R157 was at 7.730% from 7.735% at its previous close.
The long-term R186 was bid at 8.850% from 8.810% at its previous close.
The rand was bid at 7.5456 to the dollar from 7.5461 at its previous close.
"It's been dead quiet today, with no data to take direction from. Bonds are flat and are trading around the same levels they were earlier on," said a local trader.
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Source: FIN24
Marcus gloomy on SA recovery
July 7, 2010-- The reality is the global economy probably never emerged from the crisis and this has significant implications for growth outlooks in South Africa, Reserve Bank Governor Gill Marcus said on Wednesday.
Speaking on Wednesday at a Power Breakfast club function at the Johannesburg Country Club, she added the weak global backdrop and slow recovery by banks served up a "tough outlook" that South Africa needed to factor in.
"The recovery in South Africa is hesitant, fragile and uneven," she said.
She noted that there are limits to what can be done by monetary policy on its own, with fiscal policy, a more stable rand, closing the output gap, job creation and too high executive pay also important considerations. But she stopped short of saying there was a new policy to intervene on the rand.
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Source: FIN24
Deutsche Bank ETF Posts 51 Percent Income Fall
July 5, 2010--THE Deutsche Bank X-trackers MSCI FTSE 100 Trust reported a 51% fall in income for the year to December as a result of poor performances in most of the underlying company shares in the trust, it was announced on Friday.
Despite the fall in income, the trust's revenue rose 42% from R14,1m to R20m.
The trust is an exchange traded fund (ETF), which are investment funds traded on stock exchanges.
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Source: All Africa
JSE pulls back ahead of US jobs data
July 2, 2010--The JSE gave up some earlier gains at noon on Friday as wary investors focused on the upcoming US non-payroll
data, ignoring news that Australia has decided to replace a proposed Resource Super Profits Tax with a Mineral Resource Rent Tax (MRRT).
By noon local time the JSE all share index had risen slightly 0.12%, with resources up 0.46%, but gold miners shedding 1.07% and platinum miners off 0.29%. Banks were down 0.40%, and financials were 0.31% lower, while industrials were flat (+0.02%).
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Source: FIN24
Bonds firm further on rand
July 2, 2010-- South African bonds were firmer in midday play on Friday, on the back of a firmer rand, ahead of key US job data due later today.
By 12:12 the short-term government R154 bond was bid at 6.685% after closing at 6.710% on Thursday and the medium-term R157 was at 7.920% from 7.960% at its previous close. The long-term R186 was bid at 8.955 from 8.970 at its previous close.
The rand was bid at R7.7006 to the dollar from R7.7343 at its previous close
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Source: FIN24
Rand tad firmer ahead of US jobs data
July 2, 2010-- The remained a tad firmer in midday trade on Friday ahead of the US employment data later in the day.
A local dealer said the South African currency will likely find a new level against the US dollar after the jobs data.
At 11:33 local time the rand was bid at R7.7133 to the dollar from R7.7343 at Thursday's close. It was bid at R9.7046 to the euro from R9.6664 before and at R11.6359 against sterling from R11.7166 at its previous close.
The euro was bid at $1.2501 from $1.2501 overnight.
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Source: FIN24
JSE Launches FTSE/JSE Equally Weighted Top 40 Index
July 1, 2010--Today the Johannesburg Stock Exchange (JSE) and global index provider FTSE Group (FTSE) announce the launch of the FTSE/JSE Equally Weighted Top 40 Index. The new index adds to the existing FTSE JSE Index Series, providing an alternative to indices constructed according to the market values of the companies (or market capitalisation weightings). It is also the first equally weighted index to be launched in South Africa within the FTSE/JSE Index Series.
Aimed at fund managers globally, the introduction of the FTSE/JSE Equally Weighted Top 40 Index will extend the FTSE/JSE Africa index range and provides a variation from existing indices, allowing greater risk diversification and benchmarking for performance, particularly in equity portfolios. The majority of FTSE/JSE indices are market-cap based, with a few indices based on company fundamentals. “For some time FTSE and JSE have realised the existence of market demand for an equally weighted top 40 index. Current market conditions require a tool that allows for all companies to be considered on an even playing field,” says Ana Forssman, Senior General Manager of Information Product Sales.
“The new index provides the South African market with an exciting new investment opportunity, as well as raising visibility for South Africa amongst the international investor community,” says Jonathan Cooper, Managing Director Middle East and Africa, FTSE Group. “By providing a range of innovative strategies, FTSE is dedicated to enhancing both the level of choice and opportunities for investor diversification. We shall continue to build upon our work with the JSE to ensure we meet market demand.”
As with the FTSE/JSE Top 40 Index, the FTSE/JSE Equally Weighted Top 40 Index consists of the largest 40 companies on the JSE but unlike the FTSE/JSE Top 40 Index and other market capitalisation indices, all constituent companies have the same weighting and therefore the importance of each company in the index does not depend on its market capitalisation.
"Equal weighted indices give investors better access to all stocks in a particular segment," says Forssman. "If there's strength across a segment, products tracking equal weighting indices tend to outperform, but investments tracking market-cap weighting indices can do better depending on the market's leadership.” Forssman adds that investors could find that products based on the FTSE/JSE Equally Weighted Index are a useful aid in reducing the risk associated with the sudden drop in share price in large cap companies. Both institutional and retail investors can look forward to products tracking this index launching soon.
The FTSE/JSE Equally Weighted Top 40 Index follows the construction of the existing FTSE/JSE Top 40 index with regard to quarterly index reviews, constituents’ eligibility and constituent price data. The constituents of this index will therefore always reflect the constituents of the FTSE/JSE Top 40 index.
Source: Johannesburg Stock Exchange (JSE)
JSE declines ahead of G20 Summit
June 25, 2010--The JSE slipped for a fourth straight day on Friday amid some profit taking, with uncertainty also creeping back in to the market ahead of the G20 Summit in Toronto where the fiscal deficits afflicting some eurozone countries will once again be discussed.
At its close, the JSE all share index had lost 0.57% and resources shed 1.33%. Platinum miners gave up 0.19%, but gold miners added 0.82%. Banks moved 0.41% lower, and financials edged down 0.29%, but industrials were slightly higher, up 0.07%.
The rand was bid at 7.65 to the dollar, unchanged from the JSE's close on Thursday. Gold was quoted at US$1,254.03 a troy ounce from $1 243.47/oz at the JSE's previous close, while platinum was at $1 564.50/oz from $1 554.50/oz at the JSE's last close.
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Source: FIN24
Bonds open weaker in quiet trade
June 25, 2010-- Bonds were weaker in quiet early trade on Friday, feeling the effects of a softer rand.
By 08:45 the short-term government R154 bond was bid at 6.745% after closing at 6.730% on Thursday and the medium-term R157 was at 8.000% from 7.980% at its previous close. The long-term R186 was bid at 9.055% from 9.025% previously.
The rand was bid at R7.6433 to the dollar from R7.5742 at its previous close.
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Source: FIN24
Rand slips as euro/USD loses steam
June 25, 2010--The rand was softer in midday trade on Friday as traders trimmed their positions in the euro vs the US dollar ahead of the G20 summit in Canada. The euro lost steam against the US dollar after a brief bounce in mid-morning trade.
At 11:41 the rand was bid at R7.6563 to the dollar from R7.5742 at its previous close. It was bid at R9.4141 to the euro from its previous close of R9.3562 and was at R11.4159 against sterling from R11.3122.
The euro was bid at $1.2268 from $1.2335 overnight.
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Source: FIN24
