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 Issue: 28 February 2011 20:00

S.Africa yield spread at record high, stocks gain

By Gugulakhe Lourie and Xola Potelwa

JOHANNESBURG (Reuters) - South Africa's government bond curve steepened again on Monday with the yield spread between shorter and longer-dated debt hitting a record high as dealers positioned ahead of a debt auction on Tuesday.

Equities gained slightly for the second day running, with gold stocks among the top gainers as the market consolidates after last week's sell-off.

The rand strengthened to a five week-high as sentiment towards the dollar turned negative on speculation that the Federal Reserve would not raise interest rates yet.

Longer-dated government bonds have been under pressure since the government gave a disappointing budget deficit forecast last week, as investors anticipate new borrowing to bridge the fiscal gap will be concentrated at the far end of the curve.

The yield spread between South Africa's 13.5 percent September 2015 bond and its 10.5 percent December 2026 bond rose to a record 120 basis points before easing to close at 118 bps. That compared with a previous peak distance between the two benchmarks of 117 bps, touched in July 2010.

The yield on the 2026 bond closed at 8.945 percent on the JSE, up from 8.91 percent on Friday while the 2015 issue was unchanged at 7.77 percent.

The South African finance ministry forecast last week that the budget deficit will be 5.3 percent of GDP for financial year 2011/12, more than markets had expected.

The National Treasury is also due to sell 1.1 billion rand of 2018 paper and 1 billion rand of 2021 bonds at its weekly debt auction on Tuesday, for which dealers are likely to have prepared by selling some longer-dated debt.

"It's still the (Budget) overhang and we're also getting a bit of issuance coming though tomorrow (which) I think is also putting pressure on that back end," said Alvin Chawasema, bond dealer at Barnard Jacobs Mellet.

The rand firmed by 1.18 percent against the dollar to 6.9355 on Monday and was the highest gainer among a basket of 20 emerging market currencies watched by Reuters at 1600 GMT.

The dollar tested key support at the 6.95 area during the session, breaking through a January 20 low of 6.9502, which is also around the 50 percent retracement of its rise from January 3 this year. It also crossed its 100 day moving average at 6.96, having closed at 7.02 on Friday.


The JSE Top-40 index of blue chips was up 0.95 percent to 29,077.83, while the broader All-share index gained 0.96 percent to 32,272.09.

"I think the market has found some stability after the panic selling last week. So, just a bit of a consolidation period," said Wilmar Buys, a trader at FFO Securities.

Aspen Pharmacare was the biggest gainer among blue-chips, rising 2.52 percent to 81.50 rand, while Johannesburg-listed shares of British mall-owner Capital Shopping Centres gained 2.36 percent to 44.31 rand.

Bourse and mining heavyweight Anglo American was up 2.31 percent to 377 rand and rival miner BHP Billiton increased 1.39 percent to 277 rand.

Underpinned by firmer bullion prices lifted by safe-haven buying, gold stocks such as Gold Fields gained 2.28 percent to 124.79 rand and Harmony Gold increased 0.64 percent to 81.23 rand.

Nedbank, South Africa's fourth-largest bank, shed 0.17 percent to 127.80 rand after the group rose on Friday in anticipation of solid results posted on Monday.

Shares in Bidvest lost 0.63 percent to 156.01 rand, with one fund manager citing lacklustre sales growth in the South African industrial company's half-year results.

Mon, 28 Feb 2011

Revenue rose to R2.4 billion (R2 billion). Profit from operations and net attributable profit both more than doubled to R1.3 billion (R564 million) and R624 million (R259 million), respectively. In addition, headline earnings per share surged to 335.5cps (134.8cps). Dividend A final ord  Full story
Revenue declined to R0.4 million (R0.6 million). The loss from operations widened to R6.9 million (loss of R1.7 million). However, net attributable more than doubled to R250.5 million (R118.1 million). In addition, headline earnings per share surged to 23.7c (10.8cps). Dividend Mobile ha  Full story
Rent received 2 1,270,320 .  Full story
South Africa has banned exports of beef and other livestock due to a suspected outbreak of foot and mouth disease in the eastern part of the country, Agriculture Minister Tina Joemat-Pettersson said on Monday.  Full story

South African diversified miner African Rainbow Minerals (ARM) said on Monday first-half profit more than trebled, boosted by a rise in. . .  Full story
South Africa's trade account recorded a 4.9 billion rand deficit in January compared with a 10.3 billion rand surplus in December,. . .  Full story
Net interest income increased slightly to R16.6 billion (2009: R16.3 billion). Profit from operations was slightly lower at R6.5 billion (2009:. . .  Full story
Northam Platinum, one of South Africa's smaller platinum producers, on Monday reported a drop in first-half profit, hit by a strike. . .  Full story

Trading Statistics


Major Moves Up
SharenameSaleMove% MoveVolume
1 SOVFOOD  5906412.17.%18060
2 HUGE  1331310.83.%619716
3 ILIAD  825749.85.%14326
4 DAWN  850708.97.%20636
5 FAIRVEST  11998.18.%4292
6 PBT  11287.69.%3202838
7 DIGICOR  320227.38.%9131
8 KGMEDIA  17901207.19.%390
9 ROLFES  185126.94.%3671
10 GRANPRADE  290145.07.%417302
11 ADCORP  27001254.85.%74782
12 URONE  45582084.78.%6982
13 BRAIT  22501004.65.%100643
14 AFGRI  710304.41.%136947
15 TRNSHEX  261114.40.%31825
16 REDEFINTL  665253.91.%5243
17 SAPPI  36961373.85.%1782565
18 PIKWIK  2007733.77.%550761
19 BLUETEL  570203.64.%773813
20 ONELOGIX  14553.57.%21600

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Major Moves Down
SharenameSaleMove% MoveVolume
1 COMPCLEAR  240-60-20.00.%28700
2 MMG  150-30-16.67.%30000
3 MAZOR  150-10-6.25.%20000
4 AFEAGLE  150-10-6.25.%4960
5 METAIR  1241-79-5.98.%43903
6 OANDO  320-20-5.88.%2556
7 SPANJRD  371-19-4.87.%2000
8 LITHA  242-12-4.72.%128170
9 STEFSTOCK  1040-40-3.70.%59034
10 RESILIENT  2944-89-2.93.%183720
11 VERIMARK  150-4-2.60.%4750
12 PALCAP  263-7-2.59.%2932
13 ASSORE  20500-400-1.91.%297680
14 PNR-FOODS  5300-98-1.82.%1239
15 SPURCORP  1355-25-1.81.%130054
16 WESIZWE  230-4-1.71.%132566
17 DELTA  825-14-1.67.%179718
18 CIPLAMED  729-11-1.49.%2387796
19 ARB  358-5-1.38.%22200
20 CASHBIL  8379-109-1.28.%24085

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New Highs
SharenameSaleHighMove% MoveVolume
1 TREMATON  15015053.45.%9500
2 SABVEST-N  770770202.67.%5
3 PSG  43204400561.31.%11685

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New Lows
SharenameSaleLowMove% MoveVolume
1 DELTA  825825-14-1.67.%179718
2 AFROX  18491820-1-0.05.%64764
3 ESORFRANK  1801700.128645
4 KELLY  3833500.8500
5 CITYLDG  68756740751.10.%201075

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Spot Prices
NameTimeRPMove% Move
JSE Overall17:0032272.09306.500.96%
JSE Top 4017:0029077.83274.040.95%
JSE Gold17:002765.8128.501.04%
JSE Financial17:0021209.7674.380.35%
JSE Industrial17:0031526.19279.190.89%
JSE Indust 2517:0026302.04228.360.88%
JSE Resource17:0058987.88752.601.29%
DJ Futures20:0012205.0095.000.78%
DJ Ind19:3512217.0786.620.71%
SP 50018:061328.728.840.67%
FTSE 10018:355994.01-7.19-0.12%
All Ords07:174922.60-2.30-0.05%
NZSE 5006:323370.526.610.20%
NameTimeRPMove% Move
Gold/R kg20:003153555340.17%
Brent Crude19:56112.10.950.85%
Rand / Dollar19:596.9485-0.0535-0.76%
Rand / Pound19:5511.26910.03910.35%
Rand / Euro19:559.5919-0.0334-0.35%
Rand / NZD19:575.2274-0.0333-0.63%
Rand / AUD19:557.0820-0.0318-0.45%
Yen / Dollar19:5881.85000.19000.23%
Euro / Dollar19:550.7247-0.0023-0.32%
Dollar / Euro19:591.37900.00440.32%
Pound / Dollar19:550.6152-0.0062-1.00%

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Index Summary
Index NameRPMove% Move
Top 4029,077.83274.040.95%
Mid Cap41,296.48406.040.99%
Small Cap32,157.71336.471.06%
Resource 2058,987.88752.601.29%
Industrial 2526,302.04228.360.88%
Financial 158,029.6428.110.35%
Financial & Ind. 3029,567.57188.800.64%
All Share32,272.09306.500.96%
Oil & Gas 28,887.70-102.10-0.35%
Mining 38,694.07587.771.54%
Gold Mining2,765.8128.501.04%
Platinum Mining77.73.750.97%
Oil & Gas Producers 15,532.38-54.90-0.35%
Basic Materials 32,558.87488.451.52%
Chemicals 13,483.7379.310.59%
Forestry & Paper 14,273.99342.942.46%
Industrial Metals 30,617.50220.870.73%
Industrials 28,067.40151.610.54%
General Industrials 77,767.73-342.86-0.44%
Consumer Goods 25,927.85109.780.43%
Automobiles & Parts 2,810.19-178.90-5.99%
Household Goods157.3531.89%
Health Care 31,595.13322.301.03%
Beverages 80,170.69382.720.48%
Food Producers 47,449.70487.361.04%
Index NameRPMove% Move
Personal Goods 398.01-.30-0.08%
Consumer Services 52,902.42533.021.02%
General Retailers 38,742.81395.541.03%
Travel & Leisure 3,886.114.590.12%
Media 87,912.331135.271.31%
Support Services 2,560.9295.093.86%
Telecommunications 60,406.911049.651.77%
Financials 21,209.7674.380.35%
Banks 39,186.2712.460.03%
Non-life Insurance 31,029.14831.742.75%
Life Insurance 16,017.8929.010.18%
General Financial 2,279.5825.831.15%
Technology 20,792.07354.841.74%
SHARIAH TOP40 3,312.11451.38%
FTSE/JSE SHARIAH ALL3,362.07441.33%
COAL MINING21,456.473481.65%
FTSE JSE Fledgling 4,657.73-9-0.19%
FTSE/JSE Alt X 1,039.4060.62%
RESOURCE 32,455.234141.29%
DIVIDEND PLUS165.5610.84%
FTSE/JSE RAFI 406,771.56610.91%
Capped Top 4015,069.431300.87%
Capped All Share16,207.751490.93%

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Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
01 Mar 2011BIDVESTDecember 2010 (Interim)
01 Mar 2011KAPDecember 2010 (Interim)
01 Mar 2011SANTAMDecember 2010 (Final)
01 Mar 2011SHFINV-PREFDecember 2010 (Interim)
01 Mar 2011STEINHOFFDecember 2010 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
EXXARO11-02-2411-04-0111-04-11R 3.0000
GRINDROD PREF11-02-2411-03-1111-03-22R 3.8600
GRINDROD11-02-2411-03-1111-03-22R 0.2700
LIB-HOLD11-02-2411-03-1711-03-28R 2.9100
BATS11-02-2411-03-0411-05-05R 0.8100
Ex Div**
Share NameDec-DateLDTPay-DateAmount

Upcoming AGMs**
CodeCompany NameDateStatus
ASOAustro Group Ltd01/03/2011Confirmed
GMBGlenrand MIB Ltd01/03/2011Confirmed
GMBPGlenrand MIB Ltd01/03/2011Confirmed
DONThe Don Group Ltd03/03/2011Confirmed
RACRACEC Group Ltd03/03/2011Confirmed

Stock Exchange News Service
28/02/201117:25PAP - Pangbourne Properties Limited - Results of the Pangbourne scheme
28/02/201117:05 Iliad Africa Limited - Trading Statement
28/02/201117:05 Liberty Holdings Limited - Further announcement in relation to the
28/02/201117:04 Premium Properties Limited - Results of rights offer
28/02/201116:57SOL/SOLBE1 - Sasol Limited - Competition tribunal confirms settlement of section
28/02/201116:19 RGT Smart - Directors` dealings
28/02/201116:14ZGOVI - The ZShares ETF Scheme - Withdrawal of ZGOVI participatory interests
28/02/201116:01 Miranda Mineral Holdings Limited - No Change Statement and Notice of AGM
28/02/201116:00 MAS Plc - Unaudited Condensed Interim Financial Statements Nine months
28/02/201116:00 SABMiller Plc - Total Voting Rights and Capital
28/02/201116:00TRE/MOB - Trencor/ Mobile - Reviewed results for the year ended 31 December 2010
28/02/201115:53 Sephaku Holdings - Resignation financial director and appointment of
28/02/201115:51 Capitec Bank Holdings Limited - Dealing in securities by associates of A
28/02/201115:36 Consolidated Infrastructure Group Limited - No change statement and notice
28/02/201115:32SCIB: GRTSIG - The Standard Bank Of South Africa Limited - Distribution
28/02/201115:23 London Finance & Investment Group P.L.C - Trading Statement
28/02/201115:12 Taste Holdings Limited - Change in executive responsibilities
28/02/201115:10 African Rainbow Minerals Limited - Commencement of Chief Executive Officer
28/02/201115:08 PBT Group Limited - Cautionary Announcement
28/02/201115:08 Wits Gold - Amendment to Dealings in Securities by a Director
28/02/201114:59 Keaton Energy Holdings Limited - General issue of shares for cash
28/02/201114:58RAWA1 - Rand Water - Interim results for the six months ended 31 December 2010
28/02/201114:30 Anglo American plc - Director`s / PDMR`s interests
28/02/201114:30INL/INP - Investec Limited/Investec plc - Investec plc - voting rights and
28/02/201114:23 Harmony Gold Mining Company Ltd - Change in company secretary
28/02/201114:12 Santova Logistics Limited - Director`s dealing in securities
28/02/201114:08 Famous Brands Limited - Dealings in securities
28/02/201113:50 Cipla Medpro South Africa Limited - Trading statement and clarification of
28/02/201113:36 PBT Group Limited - Dealings in securities by Directors
28/02/201113:33 Huge Group Limited - Director`s dealings in securities
28/02/201113:28 Crookes Brothers Limited - Dealing in securities by a director
28/02/201113:24 PBT Group Limited - Dealings in securities by directors
28/02/201113:06 Afrimat Limited - Director`s Dealings
28/02/201113:00 The Foschini Group Ltd - Directors Dealing in Securities
28/02/201112:53 Remgro Limited - Dealings in securities by a director
28/02/201112:42 Cashbuild Limited - Change to the board of directors
28/02/201112:05THEE - Outcome of Competition Tribunal Hearings
28/02/201111:17NBKP - Nedbank Limited - Correction: Audited Summarised Financial Results for
28/02/201111:00 Old Mutual Plc - Nedbank Group Limited audited summarised financial
28/02/201110:45 Spanjaard Limited - Declaration of ordinary dividend Number 19
28/02/201110:45BRT/BRN - Brimstone Investment Corporation Limited - Announcement regarding
28/02/201110:40IPL/IPLP - Imperial Holdings Limited - Dealing in securities by a director of a
28/02/201110:32 Astrapak Limited - Change of company secretary
28/02/201110:08CPIP - Capitec Bank Holdings Limited - Declaration of a dividend of 343.77 cents
28/02/201109:58- IPSA Group Plc - Correction re Warrants
28/02/201109:57NEDIHC - Investec Warrants - Declared Final Dividend Announcement on Nedbank
28/02/201109:42 Keaton Energy Holdings Limited - Sale of shares by Moneybox Investments
28/02/201109:01 Harmony Gold Mining Company Ltd - Dealing in securities by directors
28/02/201109:00 SUN International Limited - Profit and dividend announcement for the six
28/02/201108:10 Firestone Energy Limited - Firestone & Sekoko Sign Shareholders "Joint
28/02/201108:00 Blue - Results of the meeting of shareholders held on Friday 25 February
28/02/201108:00 Northam Platinum Limited - Reviewed interim results and dividend
28/02/201108:00 Nedbank Group - Audited summarised financial results for the year ended 31
28/02/201108:00NBKP - Nedbank Limited - Audited summarised financial results for the year ended
28/02/201107:58 BHP Billiton Plc - Notification of Change of Interests of Persons
28/02/201107:53 Gold One International Limited - Appendix 4E full year report
28/02/201107:30 The Bidvest Group Limited - Results for the half year ended December 31
28/02/201107:15 Anglo American plc - Treasury Shares - Transfers
28/02/201107:11 BHP Billiton Plc - Transaction in shares
28/02/201107:10GEN - FTSE/JSE Africa Index Series - Bauba Platinum Ltd (South Africa): Deletion
28/02/201107:06 Gold One declares maiden annual profit - 2010 Annual financial results
28/02/201107:05 Gold One International Limited - Audited abridged consolidated financial
28/02/201107:05 African Rainbow Minerals Limited - Unaudited Interim Results for the six
28/02/201107:05 Hulamin Limited - Audited results for the year ended 31 December 2010
28/02/201107:05 Kairos Industrial Holdings Limited - Renewal of cautionary announcement
28/02/201107:05 Afrimat Limited - Closed period share repurchase programme

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