Friday, 19 August 2011 - 20:00
SAfrica 4-year bond yield at record low; stocks recover
By Xola Potelwa
JOHANNESBURG (Reuters) - The yield on South Africa's four-year government bond closed at a record low on Friday as prices rose on expectations the central bank would keep interest rates steady or even cut them before year-end, as the global growth outlook deteriorates.
Share prices recovered and ended in positive territory, lifted by an upturn in U.S. stocks, and helped the rand to recover. But some resources stocks such as gold miner Harmony Gold took a beating.
Bonds closed with the yield on the four-year note at a life-time low of 6.63 percent on the Johannesburg Stock Exchange, mainly driven by offshore buyers attracted by the higher yield, traders said.
"The bond market is closing exceptionally strong. We've seen buying of our bonds across the curve, the forward rate agreements are also suggesting the possibility of a rate cut going forward now as well," said Richard Farber, a bond trader at World Wide Capital Securities, based in Johannesburg.
Forward rate agreements are instruments used to gauge expectations of future interest rates and traders are starting to price in a slight chance of a South African rate cut early next year.
STOCKS RECOVER, BOOST RAND
Share prices recovered in tandem with U.S. stocks, but gold miner Harmony Gold plunged 5 percent, its biggest one-day fall in two months, as investors continued to punish the stock after the company posted a 67 percent fall in quarterly profit on Monday.
Its shares were the worst performer on the Johannesburg Top-40 benchmark index.
All three major U.S. indexes, the Dow Jones Industrial average, the Standard & Poor's 500 Index and the Nasdaq Composite Index, turned positive in early trade.
"We've recovered quite nicely on the back of the markets overseas that are recovering a little bit," said Rigardt Maartens, a portfolio manager at PSG Online Securities.
"There's so much negative news coming out of the global economy at this stage so it's difficult to predict when it's going to recover, but we expect a bit of a relief rally."
The JSE Top-40 ended 0.44 percent higher at 26,145.28 and the broader All-share index rose 0.31 percent to 29,378.69.
The general resources index dropped 0.84 percent.
Banks such as Absa Group and Standard Bank clawed back losses and gained 3.05 and 2.81 percent respectively.
The rand came back from the day's lows to trade at 7.18 by 1600 GMT, 0.17 percent off the New York close of 7.1920.
"It's come back a little bit purely as a play on what's been happening to equities. There was a lot of nervousness around this morning with Asia softer and then as Wall Street opened up a little bit firmer it has helped European and regional equities in this part of the world," said Nigel Rendell, senior strategist at RBC.
Fri, 19 Aug 2011
Further to the announcements released on SENS on 25 May 2011 and 7 July 2011, shareholders are advised that discussions which relate to the company are still underway and as a. . .
Notice was given that the annual meeting of shareholders (the "meeting") of First Uranium Corporation (the "corporation") will be held at The National Club, 303 Bay Street, Toronto, Ontario, Canada, M5H. . .
Shareholders were referred to the firm intention announcement published by Voxtelcom on SENS on 14 July 2011 and in the press on 15 July 2011 regarding the terms on which Business. . .
World Markets (Spot Prices)
|JSE Top 40||16:56||26145.28||114.97||0.44%|
|JSE Indust 25||16:56||25997.12||275.93||1.07%|
|Rand / Dollar||19:58||7.1900||-0.0028||-0.04%|
|Rand / Pound||19:55||11.8473||-0.0112||-0.09%|
|Rand / Euro||19:55||10.3578||0.0424||0.41%|
|Rand / NZD||19:57||5.9027||-0.0119||-0.20%|
|Rand / AUD||19:55||7.5000||0.0278||0.37%|
|Yen / Dollar||19:57||76.4500||-0.0700||-0.09%|
|Euro / Dollar||19:55||0.6947||-0.0032||-0.46%|
|Dollar / Euro||19:57||1.4390||0.0067||0.47%|
|Pound / Dollar||19:50||0.6055||-0.0002||-0.03%|
Click here for the Sharenet Spot Price page
The JSE Today
|Index Name||RP||Move||% Move|
|Financial & Ind. 30||28,958.49||362.28||1.27%|
|Oil & Gas ||23,657.01||173.92||0.74%|
|Oil & Gas Producers ||12,719.94||93.52||0.74%|
|Basic Materials ||26,563.98||-228.63||-0.85%|
|Forestry & Paper ||12,104.30||15.44||0.13%|
|Industrial Metals ||26,137.16||-372.34||-1.40%|
|General Industrials ||72,833.40||462.69||0.64%|
|Consumer Goods ||25,608.55||112.27||0.44%|
|Automobiles & Parts ||3,691.07||-45.29||-1.21%|
|Health Care ||32,001.50||170.13||0.53%|
|Index Name||RP||Move||% Move|
|Food Producers ||47,718.05||56.45||0.12%|
|Personal Goods ||371.04||-6.29||-1.67%|
|Consumer Services ||50,955.92||360.03||0.71%|
|General Retailers ||42,526.01||354.80||0.84%|
|Travel & Leisure ||3,607.36||-13.80||-0.38%|
|Support Services ||2,304.29||-8.45||-0.37%|
|Non-life Insurance ||30,296.82||230.37||0.77%|
|Life Insurance ||14,775.22||-30.36||-0.21%|
|General Financial ||2,081.99||15.82||0.77%|
|SHARIAH TOP40 ||2,841.57||1||0.03%|
|FTSE/JSE SHARIAH ALL||2,911.27||0||0.01%|
|FTSE JSE Fledgling ||4,478.49||6||0.14%|
|FTSE/JSE Alt X ||1,138.72||1||0.05%|
|SA LISTED PROPERTY ||380.50||-0.20%|
|CAPPED PROPERTY ||310.20||-0.11%|
|FTSE/JSE RAFI 40||6,092.66||40||0.66%|
|Capped Top 40||13,752.28||73||0.54%|
|Capped All Share||14,842.89||48||0.32%|
Click here for the Sharenet Index Summary page
Latest Consensus Changes**
|RBP||ROYAL BAFOKENG PLATINUM L...||HOLD||17 Aug|
|EMI||EMIRA PROPERTY FUND||HOLD||17 Aug|
|KEH||KEATON ENERGY HLDGS LTD||HOLD||17 Aug|
|EXX||EXXARO RESOURCES LIMITED||BUY||17 Aug|
|NED||NEDBANK GROUP LTD||HOLD||16 Aug||
|Expected||Company Name||Fin. Date|
|22 Aug 2011||ADVTECH||June 2011 (Interim)|
|23 Aug 2011||BRIMST-N||June 2011 (Interim)|
|23 Aug 2011||BRIMSTON||June 2011 (Interim)|
|23 Aug 2011||EQSTRA||June 2011 (Final)|
|23 Aug 2011||EQSTRADA||June 2011 (Final)|
|GRINDROD PREF||11-08-18||11-09-02||11-09-12||R 3.5700|
|FGL||Finbond Group Ltd||19/08/2011||Confirmed|
|PKH||Protech Khuthele Holdings Ltd||23/08/2011||Unconfirmed|
|CDZ||Cadiz Holdings Ltd||24/08/2011||Confirmed||
Stock Exchange News Service
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