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 Issue: 25 February 2011 20:00

Long-term S.Africa bonds rise after week of losses

By Xola Potelwa and David Dolan

JOHANNESBURG (Reuters) - Long-term South African bonds rose on Friday after a four-day sell-off fuelled by the government's disappointing budget deficit forecast for next fiscal year.

Dealers said bonds' slide, which took the yield on the 2026 benchmark up more than 30 basis points in four days, was partly driven by knee-jerk foreign selling after the Budget was announced on Wednesday.

That wave of selling has abated and many domestic investors are not willing to sell at current levels, especially given the strength of the rand.

The yield on the 2026 bond was at 8.915 percent late on Friday, down from Thursday's finish of 8.975 percent. The spread with the 2015 bond, which touched a record high of 120 basis points on Thursday before closing at 117 bps, narrowed a further 2 bps.

"Generally there shouldn't be any major news that should drive the local (bond) market, but we need to keep a very close eye on what's happening internationally; what impact oil is going to have on inflation in the long run. We'll take our cue from what happens over there," said Alexi Contogiannis, manager of debt capital markets at Standard Bank.


The rand strengthened past the psychological 7.00 level against the dollar as emerging market currencies recovered with a drop in oil prices, and after South African authorities indicated this week that it was not opposed to moderate rand strength.

The dollar broke below technical support at 7.04 rand, the 38.2 percent retracement of its rise this year, to fall as low as 6.9645. It then bounced from moderate chart support on the 100-day average, now at 6.9613, to stand at 7.0100 in late trade compared to its previous close of 7.05 in New York on Thursday.

"We're range-bound between 6.95 and 7.10 with both exporters and importers aggressive at the 7.00 handle, so it should stay around that level until those are all taken out," said Brigid Taylor from Nedbank.

But she added, "We could see, obviously euro-dependent, a potential pull- back on this rand back down to 6.90 again."


Stocks rose for the first time in four sessions, edging up 0.8 percent as the pull-back in global oil prices eased concern about a shock to growth in emerging markets.

Shares of Remgro gained 3.3 percent after the investment holding firm said it would own nearly 32 percent of financial firm RMB Holdings following a previously announced share-swap deal.

Investors have punished South African stocks since the middle of the month, after the benchamrk Top-40 hit its highest level in more than 2-1/2 years and the broad All-share index touched a record high. But that selling pressure may be abating, as both indexes have moved back to a price-earnings ratio of around 15 times, in line with their historical averages.

"We still are in a bullish trend and I wouldn't be the one to bet against that," said Mitchell Gannaway, a trader at Thebe Securities.

The Top-40 index rose 0.81 percent to 28,803.79. The All-Share edged up 0.82 percent to 31,965.59. The Top-40 is down nearly 5 percent from its more than 2-1/2 year high of 30,195.81 hit on February 14.

Still, some investors believe there is little upside for Johannesburg given steeper discounts in developed markets.

Shares of FirstRand rose 2.6 percent, recouping some of their recent losses. The South African bank had fallen 5.2 percent in the previous five sessions.

Likewise, African Rainbow Minerals gained 2.1 percent to 211 rand. The miner had slid nearly 11 percent in the previous five days.

Earnings will continue to be a focus for investors in the coming week, with lenders Nedbank and Standard Bank both due to report results.

Fri, 25 Feb 2011

A derailment on the Richards Bay coal line near Ermelo on Thursday is unlikely to result in large tonnage lost, rail and exporter sources said.  Full story
Revenue amounted to R1 625 million (2009: R1 602 million). Gross profit decreased to R233.2 million (2009:R252.1 million) and operating profit declined to R63.3 million (2009:R70.1 million). Profit attributable to ordinary shareholders increased to R39.6 million (2009: R34.9 million). Headli  Full story
Mexico on Thursday forecast a smaller corn crop after frosts badly damaged the harvest this month, possibly requiring more imports and raising fears about higher prices for the staple food.  Full story

South African petrol pump prices in the main inland commercial region will increase by 43 cents a litre, or 4.8 percent,. . .  Full story
Revenue increased 10% to R411.1 million (R373.7 million), with 90% being generated from South African operations and the remainder from the. . .  Full story
State-run Steel Authority of India Ltd has signed an initial agreement with South Africa's Afripalm Resources to consider building a steel. . .  Full story
South African bonds steadied early on Friday after considerable losses this week on the Treasury's disappointing Budget forecast, but traders said. . .  Full story

Trading Statistics


Major Moves Up
SharenameSaleMove% MoveVolume
1 DIAMONDCP  1252525.00.%10000
2 SABLE  150019915.30.%2500
3 HUGE  1201514.29.%397313
4 SPURCORP  1380806.15.%113314
5 SACOIL  198115.88.%3118918
6 JUBILEE  327144.47.%135155
7 METOREX  564244.44.%1239812
8 PUTPROP  560203.70.%6000
9 ABSA  129654403.51.%1325633
10 WOOLIES  2583833.32.%6053976
11 REMGRO  113253593.27.%1383262
12 TFG  78402403.16.%1803054
13 HCI  81452453.10.%7379
14 NETCARE  1464443.10.%1555176
15 REINET  1165353.10.%3108547
16 JDGROUP  51501523.04.%567248
17 CERAMIC  142004183.03.%1150
18 CLICKS  37851102.99.%4706587
19 RMBH  38351082.90.%2615166
20 LIB-HOLD  76852152.88.%314274

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Major Moves Down
SharenameSaleMove% MoveVolume
1 TRNSHEX  250-34-11.97.%28678
2 ERBACON  115-15-11.54.%2191
3 REXTRU-N  1250-130-9.42.%177
4 AFEAGLE  160-15-8.57.%500
5 TRADEH  692-58-7.73.%82
6 MASONITE  3500-200-5.41.%269
7 HULAMIN  755-40-5.03.%273043
8 GBGOLD  1820-94-4.91.%32114
9 BELL  1195-55-4.40.%150943
10 CLIENTELE  950-40-4.04.%301
11 PALCAP  270-10-3.57.%56252
12 DRDGOLD  329-11-3.24.%413725
13 PAN-AF  120-4-3.23.%526462
14 ANOORAQ  950-28-2.86.%3360
15 ONELOGIX  140-4-2.78.%42170
16 AFGRI  680-18-2.58.%86667
17 DELTA  839-21-2.44.%260910
18 PETMIN  303-7-2.26.%513200
19 S-OCEAN  220-5-2.22.%6350
20 KAP  225-5-2.17.%42337

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New Highs
SharenameSaleHighMove% MoveVolume

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New Lows
SharenameSaleLowMove% MoveVolume
1 HULAMIN  755750-40-5.03.%273043
2 DELTA  839839-21-2.44.%260910
3 GROUP-5  28572811-44-1.52.%222035
4 CITYLDG  68006792-58-0.85.%77794
5 HOSP-B  9109000.22750
6 BASREAD  105010320.49155
7 MRHLD  25072245100.40.%8544370
8 ESORFRANK  18017510.56.%456870
9 INVLTD  53455201751.42.%852872

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Spot Prices
NameTimeRPMove% Move
JSE Overall17:0031965.59259.120.82%
JSE Top 4017:0028803.79232.560.81%
JSE Gold17:002737.31-39.73-1.43%
JSE Financial17:0021135.38308.761.48%
JSE Industrial17:0031247.00385.911.25%
JSE Indust 2517:0026073.68357.611.39%
JSE Resource17:0058235.2863.730.11%
DJ Futures19:4612105.0068.000.56%
DJ Ind19:4512125.5357.030.47%
SP 50019:101315.259.150.70%
FTSE 10018:356001.2081.221.37%
All Ords07:364924.9023.800.49%
NZSE 5006:263363.91-4.44-0.13%
NameTimeRPMove% Move
Gold/R kg20:00316805-2913-0.91%
Brent Crude19:56111.34-2.93-2.56%
Rand / Dollar19:597.0002-0.0400-0.57%
Rand / Pound19:5511.2363-0.0973-0.86%
Rand / Euro19:559.6337-0.0859-0.88%
Rand / NZD19:585.2569-0.0044-0.08%
Rand / AUD19:557.11050.00270.04%
Yen / Dollar19:5981.7800-0.1500-0.18%
Euro / Dollar19:550.72640.00210.29%
Dollar / Euro19:591.3756-0.0045-0.33%
Pound / Dollar19:550.62100.00160.26%

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Index Summary
Index NameRPMove% Move
Top 4028,803.79232.560.81%
Mid Cap40,890.44402.320.99%
Small Cap31,821.24-37.48-0.12%
Resource 2058,235.2863.730.11%
Industrial 2526,073.68357.611.39%
Financial 158,001.53129.821.65%
Financial & Ind. 3029,378.77419.801.45%
All Share31,965.59259.120.82%
Oil & Gas 28,989.8084.280.29%
Mining 38,106.3031.970.08%
Gold Mining2,737.31-39.73-1.43%
Platinum Mining76.98-.05-0.06%
Oil & Gas Producers 15,587.2845.310.29%
Basic Materials 32,070.4253.580.17%
Chemicals 13,404.42-35.84-0.27%
Forestry & Paper 13,931.0564.750.47%
Industrial Metals 30,396.63544.431.82%
Industrials 27,915.79342.951.24%
General Industrials 78,110.591529.752.00%
Consumer Goods 25,818.07191.230.75%
Automobiles & Parts 2,989.0922.650.76%
Household Goods154.4331.93%
Health Care 31,272.83332.181.07%
Beverages 79,787.97850.881.08%
Food Producers 46,962.34288.490.62%
Index NameRPMove% Move
Personal Goods 398.31.500.13%
Consumer Services 52,369.401129.222.20%
General Retailers 38,347.27856.912.29%
Travel & Leisure 3,881.5233.040.86%
Media 86,777.061940.632.29%
Support Services 2,465.833.970.16%
Telecommunications 59,357.26652.391.11%
Financials 21,135.38308.761.48%
Banks 39,173.81806.402.10%
Non-life Insurance 30,197.4080.030.27%
Life Insurance 15,988.88187.081.18%
General Financial 2,253.7521.530.96%
Technology 20,437.23278.591.38%
SHARIAH TOP40 3,267.11110.32%
FTSE/JSE SHARIAH ALL3,317.96110.33%
COAL MINING21,108.401710.82%
FTSE JSE Fledgling 4,666.45-15-0.32%
FTSE/JSE Alt X 1,033.00-19-1.82%
RESOURCE 32,041.40360.11%
DIVIDEND PLUS164.1821.15%
FTSE/JSE RAFI 406,710.20620.93%
Capped Top 4014,939.921290.87%
Capped All Share16,058.271350.85%

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Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
26 Feb 2011WILLTELLDecember 2010 (Interim)
28 Feb 2011HOSP-ADecember 2010 (Interim)
28 Feb 2011HOSP-BDecember 2010 (Interim)
28 Feb 2011MERCANTILEDecember 2010 (Final)
28 Feb 2011SIMEKANovember 2010 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
HUDACO11-01-2811-03-0411-03-14R 2.3500
CBH11-01-2711-05-0611-05-16R 0.1110
SBRJSEP1110-12-1511-03-0411-03-15R 1.4100
TFG PREF10-11-1611-03-1711-03-28R 0.0650
PARACON10-11-1511-03-0411-03-14R 0.1000
Ex Div**
Share NameDec-DateLDTPay-DateAmount
FIRSTRANDB-P11-02-0311-02-1811-02-28R 3.1355
CAPITAL11-02-0311-02-1811-02-28R 0.3178
REDEFINE11-02-0211-02-1811-02-28R 0.1500
DIALOGUE11-01-1311-02-1811-02-28R 0.1238

Upcoming AGMs**
CodeCompany NameDateStatus
CUP2Cullinan Holdings Ltd25/02/2011Confirmed
VOXVox Telecom Ltd25/02/2011Unconfirmed
CUP3Cullinan Holdings Ltd25/02/2011Confirmed
CULCullinan Holdings Ltd25/02/2011Confirmed
CULPCullinan Holdings Ltd25/02/2011Confirmed

Stock Exchange News Service
25/02/201117:37 Bonatla Property Holdings Limited - Update on the Acquisition of Tropical
25/02/201117:35 Erbacon Investment Holdings Limited - Cautionary announcement
25/02/201117:12 Gold Fields Limited - Dealing in securities by a director
25/02/201117:07 IPSA GROUP PLC - Placing of 12.5 million new ordinary shares at 8 pence to
25/02/201116:44SCIB/SBSW17 - The Standard Bank of South Africa Limited - Reset of variable
25/02/201116:40 Erbacon Investment Holdings Limited - Dealing in securities by a director
25/02/201116:38 Erbacon Investment Holdings Limited - Dealing in securities by a share
25/02/201116:35 Famous Brands Limited - Dealings in Securities
25/02/201116:32 Bauba Platinum Limited - Resignation of a director
25/02/201116:31 Coronation Fund Managers Limited - Dealings in securities by a director
25/02/201116:30 Coronation Fund Managers Limited - Dealings in securities by a director
25/02/201116:30 Village Main Reef Gold Mining Company (1934) Limited - Declaration data
25/02/201116:13GND & GNDP - Grindrod Limited - Exercise of options by a director
25/02/201115:53 Chrometco Limited - Dealing in securities by a director
25/02/201115:22SOV / SOVN - Sovereign Food Investments Limited - Directors` dealings in
25/02/201115:13SCIB/GNDSTE - The Standard Bank Of South Africa Limited - Dividend announcement
25/02/201114:49 Remgro Limited - Announcement relating to the sale
25/02/201114:47 Ububele Holdings Limited - Trading Statement
25/02/201114:46 Litha Healthcare Group Limited - Salient dates announcement: revision of
25/02/201114:45 Results of General Meeting: Capital`s offer to acquire all linked units
25/02/201114:27FFA/FFB - Fortress - Dealing in Securities
25/02/201113:53 PBT Group Limited - Dealings in securities by directors
25/02/201113:08 Appointment of Mr Matthews Sello Moloko to the Gold Fields Board
25/02/201113:00 Insimbi Refractory and Alloy Supplies Limited - Withdrawal of Cautionary
25/02/201112:25 Securedata Holdings Limited - Trading update
25/02/201112:18 Assore Limited - Change to board of directors
25/02/201112:17 RMB Holdings Limited - Finalisation Announcement
25/02/201112:00 Anglo American PLC - Nicky Oppenheimer to retire from Anglo American Board
25/02/201112:00 Mustek Limited - Reviewed financial results for the six months ended 31
25/02/201111:38CCO - Capital & Counties Properties PLC - Notification of major interests in
25/02/201111:23RMHIDD - Investec Bank Limited - Adjustment to the terms and conditions of
25/02/201111:19 Steinhoff International Holdings Limited - Posting of circular to
25/02/201111:05 Rolfes Technology Holdings Limited - Cautionary announcement
25/02/201110:52 Pinnacle Technology Holdings Limited - Appointment of Director
25/02/201110:49PPCIHJ - Investec Bank Limited - Notice of Barrier for Hot Enhanced Dividend
25/02/201110:27 Tradehold Limited - Closed Period Announcement and Renewal of Cautionary
25/02/201109:48 Rolfes Technology Holdings Limited - Dealing in securities by a director
25/02/201109:42 Simeka Business Group Limited- Finalisation Announcement
25/02/201109:38 Simeka Business Group Limited - Unaudited condensed consolidated interim
25/02/201109:32MMP - Marshall Monteagle - Results Of Second Extraordinary General Meeting And
25/02/201109:30 Ububele Holdings Limited - Cautionary announcement
25/02/201109:25 Trematon Capital Investments Limited - Dealing in Securities by Director
25/02/201108:43 Uranium One Inc - News Release
25/02/201108:32 BHP Billiton Plc - Notification of Change of Interests of Directors
25/02/201108:00 ARB Holdings Limited - Dealing in securities by an associate of directors
25/02/201107:32ESPIBQ - Investec Bank Limited - Adjustment to the terms and conditions
25/02/201107:27 Gold One International - White Water Resources Shareholders to Vote to
25/02/201107:23 Anglo American plc - Director`s / PDMR`s interests
25/02/201107:15GDO / WWR - Gold One International / White Water Resources - Posting of

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