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Welcome to the Sharenet Daily Equity Report Issue: 04 January 2011 20:00 |
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By Stella Mapenzauswa and Gugulakhe Lourie
JOHANNESBURG (Reuters) - South Africa's rand fell as much as 1.2 percent against the dollar on Tuesday as import pressure built up after the holidays, while government bonds rallied on expectations that interest rates will be cut this month.
Stocks closed slightly higher after Anglo American completed the sale of Chile-based Moly-Cop and Canada-based AltaSteel to OneSteel Ltd.
The rand plumbed a session low of 6.7160 to the dollar, its weakest since December 31. It was trading at 6.6969 by 1533 GMT, 1.01 percent weaker than Monday's close of 6.63.
"The rand has weakened against the baskets ... We are seeing some people sell some rand against the crosses, probably some profit-taking," head of fixed income commodities and currencies at Absa Capital Garth Klintworth said.
"The rand has performed phenomenally well in the last two weeks of December. This is probably just a healthy correction."
The currency remains near three-year highs against the dollar, having gained about 10 percent in 2010. Market watchers say its strength gives the Reserve Bank scope to cut rates further on January 20, adding to the 650 basis points of cuts implemented from December 2008 to November last year.
The prospect of lower rates boosted government bonds on Tuesday and inversely the yield on the 2015 bond fell 19.5 basis points to 7.255 percent while that on the 2026 note was down by an equal margin at 8.2 percent.
"After the London holiday we've seen some emerging market funds put some money to work in South Africa," Klintworth said.
On Tuesday shares of Anglo American, the biggest gainer on the local bourse, climbed 3.31 percent to 359 rand, lifting the Top-40 index of blue chips by 0.36 percent to 28,933.58. The broader All-share index gained 0.37 percent to 32,427.40.
Anglo American shares' 14-day relative strength index, or RSI, is at 70, suggesting they may be oversold.
"The rest of the market was not that bullish. Basically, it's Anglo American that's keeping our market up," said Wilmar Buys, a trader at FFO Securities.
In November, Anglo American announced the sale of the two assets for $932 million in debt and cash as part of a process to streamline its business.
Miner Exxaro gained 3.2 percent to 145 rand and Kumba Iron Oroe rose 2.67 percent to 443 rand.
Gold stocks were the worst performers as gold tumbled nearly 2 percent . Shares in Harmony Gold dropped 3.03 percent to 81.50 rand, and AngloGold Ashanti lost 4.26 percent to 315 rand.
Tue, 04 Jan 2011![[IMAGE]](image.php@width=300&cropratio=2%253A1&image=%252Fnewsimages%252F2011-01-04T115908Z_01_AJOE7030XAM00_RTROPTP_3_OZABS-SAFRICA-COAL-EXPORTS-20110104.JPG "Labourer searches for usable coal at a cinder dumpsite in Changzhi") South Africa's 2010 coal exports rose nearly 4 percent to 63.43 million tonnes, boosted by demand from China and India, the Richards Bay Coal Terminal (RBCT) said on Tuesday. Full story |
Ghana joined the club of
oil-producing nations in December, offering it the chance to
transform the fortunes of its aid-dependent economy. Full story South Africa President Jacob
Zuma faces new challenges to his leadership from local elections
in 2011 and familiar tests from governing partners pressing him
to clean up what they see as growing cronyism. Full story A fast developing financial
services sector will have helped Rwanda's gross domestic product
to grow by 7.2 percent in 2010 compared with 6.1 percent the
previous year. Full story |
![[IMAGE]](image.php@width=140&cropratio=4%253A3&image=%252Fnewsimages%252F2011-01-04T072633Z_01_AJOE7030KOB00_RTROPTP_3_OZABS-MARKETS-SAFRICA-MORNING-20110104.JPG "A BANK TELLER LOOKS AT 50 AND 100 SOUTH AFRICAN RAND NOTES.") 09h25 South Africa's rand weakened against the dollar on Tuesday after struggling to hold on to 3-1/2 year highs the previous day. . . Full story | ![[IMAGE]](image.php@width=140&cropratio=4%253A3&image=%252Fnewsimages%252F2011-01-03T094449Z_01_AJOE7020R2Q00_RTROPTP_3_OZABS-MALI-GOLD-FORECAST-20110103.JPG "Melted gold flows out of a smelter into a mould of a one kilogram bar at a plant of gold refiner and bar manufacturer Argor-Heraeus SA in the southern Swiss town of Mendrisio") Mali expects its gold production to rise 20 percent in 2011 to 60 tonnes and increase further to 62 tonnes in. . . Full story | ![[IMAGE]](image.php@width=140&cropratio=4%253A3&image=%252Fnewsimages%252F2011-01-03T070743Z_01_AJOE7020JSW00_RTROPTP_3_OZABS-MARKETS-SAFRICA-MORNING-20110103.JPG "A CHILD HOLDS A FIFTY RAND NOTE.") South Africa's rand touched a near 3-1/2-year high against the dollar on the first trading day of 2011 on Monday, backing. . . Full story | ![[IMAGE]](image.php@width=140&cropratio=4%253A3&image=%252Fnewsimages%252F2010-12-31T093356Z_01_AJOE6BU0QKM00_RTROPTP_3_OZABS-TRANSNET-RAIL-20101231.JPG "A coal merchant shovels coal at a coal yard in Melmerby, northern England") South African logistics group Transnet said on Friday it had reopened two rail lines leading to the Richards Bay coal export. . . Full story |
Trading Statistics
| Date | Adv. | Decl. | Unch. | Actives | Volume | Value | Trades | Orders |
|---|---|---|---|---|---|---|---|---|
| 04/01/2011 | 200 | 143 | 67 | 410 | 152,934,849 | R7,361,068,917 | 72300 | 1983870 |
| 03/01/2011 | 187 | 125 | 78 | 390 | 128,050,031 | R3,762,540,166 | 53672 | 872405 |
| 31/12/2010 | 139 | 107 | 64 | 310 | 65,370,735 | R2,621,870,882 | 16021 | 480284 |
| 30/12/2010 | 174 | 138 | 72 | 384 | 118,618,120 | R4,580,415,863 | 42201 | 1760119 |
| 29/12/2010 | 178 | 112 | 71 | 361 | 81,411,080 | R3,882,523,703 | 39194 | 1575622 |
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