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By Phumza Macanda and Tiisetso Motsoeneng
JOHANNESBURG (Reuters) - South Africa's government bonds took a breather on Monday, with yields coming off record lows as some dealers cashed in their holdings after a strong rally last week.
Weekly offshore buying of South African debt was at its highest in more than a year last week, pushing yields to record lows. But yields have bounced, particularly in the long end of the curve.
Stocks edged higher on bargain-hunting after last week's sharp decline while lingering worries about the health of the global economy boosted gold shares.
The rand softened against the dollar and was expected to remain vulnerable given elevated levels of aversion to risky assets.
It was trading at 7.22 to the dollar at 1528 GMT, 0.35 percent weaker than Friday's New York close of 7.1956.
After last week's wide gyrations, Monday's moves were relatively mild as dealers were looking to this week's annual meeting of the U.S. Federal Reserve for direction.
On the bond market, the yield on the 2015 bond ended at 6.56, seven basis points lower than Friday's close and off a session low of 6.46 percent. The 2026 bond yield went up eight basis points to 7.945 percent.
"The market is trying to find more suitable levels after the overbought levels we saw earlier but I don't think the (bullish) trend changes ," said Ian Scott, a dealer at Stanlib.
Increasing expectations that the South African Reserve Bank could cut the repo rate towards year-end from the current 5.5 percent have in part driven bond market gains.
Rates on the FRA (forward rate agreements) market have pointed to a 50-50 chance of such a scenario, with the 3x6 contract falling to 5.4 percent.
But the market may be running ahead of itself with that expectation and the bond market could see more losses this week, said Ion de Vleeschauwer, chief dealer at Bidvest Bank.
"We would need to see a substantial decline in growth."
"The Reserve Bank's mandate is still inflation targeting and I can't see them cutting rates with inflation still above five percent. We are going to have a stable rates environment for some time," he added.
Inflation data later this week will give the market some direction. July's consumer inflation data on Wednesday is expected to come it at 5.2 percent year-on-year up from 5.0 percent in June.
A higher-than-expected reading should see the market curb monetary loosening forecasts, to add to the 650 basis points worth of rate decreases between December 2008 and end-2010.
GOLD SHARES SHINE ON BOURSE
The JSE Top-40 blue-chip index was up 0.17 percent at 26,188.71 and the broader All-share index gained 0.19 percent to 29,433.12.
"A lot of these stocks have reached levels where investors see some value," Ferdi Heyneke, a portfolio manager at Afrifocus Securities said. "But the mood is still fragile and it should remain volatile in the coming sessions."
Among the equity movers, Harmony jumped 4.63 percent to 90.92 rand after the gold miner said its operations in Papua New Guinea were not threatened by plans to shift mineral ownership there to local communities from the state.
Rivals Gold Fields added 3.36 percent to 124.65 rand and AngloGold Ashanti improved 2.55 percent to 333 rand.
Gold prices retreated from record highs near $1,900 an ounce on Monday but they remain elevated due to lingering economic worries.
Grindrod booked its biggest daily gain nearly three months after shipping firm said it was considering taking a 2 billion rand cash injection from a potential strategic partner. Shares in the company rallied 6.06 percent to 14 rand.
Mon, 22 Aug 2011![[IMAGE]](image.php@width=300&height=150&cropratio=2%253A1&image=%252Fnewsimages%252F2011-08-22T104701Z_01_AJOE77L0TYF00_RTROPTP_3_OZABS-HARMONYGOLD-20110822.JPG "One kilogram gold bars are seen in this picture illustration taken at the Korea Gold Exchange in Seoul") The CEO of Harmony Gold, the world's fifth largest gold producer, said reported plans to shift mineral ownership in Papua New Guinea to local communities from the state would complicate negotiations but nationalisation was not being discussed. Full story ![[IMAGE]](image.php@width=300&height=150&cropratio=2%253A1&image=%252Fnewsimages%252F2011-08-22T085034Z_01_AJOE77L0OKC00_RTROPTP_3_OZABS-MARKETS-SAFRICA-MORNING-20110822.JPG "A new five rand coin is displayed by a South African Reserve Bank worker during its launch at the So..") Yields on South African government debt hit new lows on Monday, still driven by expectations that interest rates would not rise this year and aggressive foreign buying as concerns about global growth drive investors to higher yielding local bonds. Full story |
 Muammar Gaddafi was a hunted man on Monday as loyal remnants of his forces made last-ditch stands in the capital and world leaders rushed to embrace the fractious Libyan rebels as new masters of the oil-rich state. Full story  Hurricane Irene swept just north of the Dominican Republic on Monday after pummelling Puerto Rico, and forecasters saw the storm strengthening to a major hurricane off the Southeast U.S. coast by the weekend. Full story  Egypt announced plans to develop a region bordering Israel Monday after Israeli officials blamed its loosening grip on the area for the killing of eight Israelis by armed militants, inflaming tensions between the two neighbours. Full story |
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SA Business |
Absa Group, the South African bank majority owned by Barclays, has bought Mozambican insurer Global Alliance Seguros and plans another acquisition this year, the Business Day newspaper reported on Monday.. . . Full story | ||||||
CVC Capital Partners is financing
its acquisition of a majority stake in international health club
operator Virgin Active with around 450 million pounds ($745.7
million) of equity, sources familiar with the matter said.. . . Full story | An institutional investor with Kenya's infrastructure investment firm TransCentury has opted to switch its holding of the firm's convertible bond into equity, which should increase the profitability of the firm, a senior executive said.. . . Full story |
Company News |
Shareholders are referred to the cautionary announcement released on SENS on 11 July 2011 and advised that discussions regarding the offshore. . . Full story |
Shareholders were referred to the previous cautionary announcements dated 4 January 2011, 20 January 2011, 15 February 2011, 25 March 2011,. . . Full story |
Shareholders are referred to the announcements released on SENS on 14 June 2011 and 5 August 2011 wherein Afdawn shareholders were. . . Full story |
Shareholders are referred to the announcement on 5 May 2011 pertaining to the pending appointment of Mr Wenliang (Michael) Ma as. . . Full story | |||
Shareholders were advised that five of the group's subsidiary companies have been placed in provisional liquidation following the applications for liquidation by Investec Bank Ltd following the decision by the business. . . Full story |
Shareholders were advised that the company has entered into negotiations with a potential strategic partner and provider of growth capital ("Potential Strategic Partner") regarding a potential capital injection of up to. . . Full story |
Aquarius Platinum confirms recent media comment to the effect that its (indirectly held) Zimbabwean subsidiary, Mimosa Holdings (Pvt) Ltd ("Mimosa"), received a letter on Friday, 19 August 2011 from the Minister. . . Full story | |||||
Company Results | Revenue improved by 7% to R791 million (R740.2 million) and earnings before interest, taxation, depreciation and amortisation ("EBITDA") was up by 7% R143.3 million (R133.9 million). Operating profit before interest rose by 10% to R110.2 million (R100.5 million), while profit for. . . Full story | Insurance premium revenue was up by 11% to R1.1 billion (R1 billion). Net attributable profit rose by 22% to R195 million (R159.7 million). In addition, headline earnings per share grew by 25% to 61.65c (49.31cps).
Dividend
A final ordinary dividend of 53.50cps. . . Full story |
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Click here for the Sharenet Spot Price page
| Date | Adv. | Decl. | Unch. | Actives | Volume | Value | Trades | Orders |
|---|---|---|---|---|---|---|---|---|
| 22/08/2011 | 193 | 156 | 92 | 441 | 230,665,936 | R12,488,221,372 | 101431 | 2236024 |
| 19/08/2011 | 150 | 208 | 83 | 441 | 267,309,109 | R16,095,829,900 | 110797 | 2703587 |
| 18/08/2011 | 108 | 252 | 75 | 435 | 300,331,433 | R15,618,400,700 | 120320 | 2700764 |
| 17/08/2011 | 211 | 133 | 73 | 417 | 324,883,599 | R15,607,757,634 | 112016 | 2145923 |
| 16/08/2011 | 173 | 175 | 73 | 421 | 310,513,473 | R13,691,031,587 | 95856 | 2070276 |
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| Date | Time | Headline |
| 22/08/2011 | 17:50 | BIIVU - Ivuzi Investments Limited - Listing of Tap Issues |
| 22/08/2011 | 17:44 | BIIND - iNdwa Investments Limited - Listing of new financial instrument and |
| 22/08/2011 | 17:40 | UCS Group Limited - Posting of Circular and Notice of General Meeting |
| 22/08/2011 | 17:39 | Paladin Capital Limited - Curro unbundling |
| 22/08/2011 | 17:24 | Nutritional Holdings Limited - Proposed dual listing of Nutritional |
| 22/08/2011 | 17:09 | Redefine Properties International Limited - Changes to the board of |
| 22/08/2011 | 17:00 | Redefine Properties International Limited - Admission of ordinary shares |
| 22/08/2011 | 17:00 | Clientele Limited - Reviewed summarised group results for the year ended |
| 22/08/2011 | 16:44 | Redefine Properties International Limited - Offer for Redefine |
| 22/08/2011 | 16:43 | Redefine Properties International Limited - Offer for Redefine |
| 22/08/2011 | 16:30 | OML - Old Mutual Plc - Form 8.3 |
| 22/08/2011 | 16:30 | Imperial Holdings Limited - Further Cautionary Announcement |
| 22/08/2011 | 16:29 | OML - Old Mutual Plc - Form 8.3 |
| 22/08/2011 | 15:03 | BITRA - Transnet SOC Limited - Audited Condensed Consolidated Financial |
| 22/08/2011 | 15:01 | Bonatla - Renewal of Cautionary Announcement |
| 22/08/2011 | 14:55 | Wearne - General Issue of Shares for Cash and Withdrawal of the |
| 22/08/2011 | 14:49 | MND/MNP - Mondi Limited/ Mondi plc - Notification of major interests in shares |
| 22/08/2011 | 14:19 | African Dawn Capital Limited - Posting of the rights offer circular |
| 22/08/2011 | 14:12 | Wesizwe Platinum Limited - Management changes at Wesizwe Platinum |
| 22/08/2011 | 14:00 | Pinnacle Point Group Limited - Update announcement and renewal of |
| 22/08/2011 | 13:27 | Intertrading Limited - Disclosure of disposal and acquisition of |
| 22/08/2011 | 13:00 | Murray & Roberts Holdings Limited - Results of the resolution of ordinary |
| 22/08/2011 | 12:42 | GND/GNDP - Grindrod - Cautionary Announcement |
| 22/08/2011 | 12:27 | INL/INP - Investec - Form 8 (DD) |
| 22/08/2011 | 12:08 | INL/INP - Investec - Form 8 (DD) |
| 22/08/2011 | 10:58 | INVS - Investec Bank Limited - Amendment announcement the issue of enhanced |
| 22/08/2011 | 10:54 | PSG Group Limited - Results of the General Meeting |
| 22/08/2011 | 10:38 | BSI Steel Limited - Dealing in securities by directors |
| 22/08/2011 | 10:36 | BIBG3 - Blue Granite Investments NO. 3 (PROPRIETARY) Limited - Notice of a |
| 22/08/2011 | 10:22 | South African Coal Mining Holdings Limited - Change to the board of |
| 22/08/2011 | 10:01 | Trematon Capital Investments Limited - Dealing in Securities by |
| 22/08/2011 | 09:50 | INL/INP - Investec - Rule 2.10 of the UK City Code on Takeovers and Mergers |
| 22/08/2011 | 09:15 | ACL132 - Absa Bank Limited - New Financial Instrument Listing |
| 22/08/2011 | 09:14 | ABN38 - Absa Bank Limited - New Financial Instrument Listing |
| 22/08/2011 | 09:00 | ADvTECH Limited - Interim results for the six months ended 30 June |
| 22/08/2011 | 08:05 | Aquarius Platinum Limited - Media comment in respect of Zimbabwean |
| 22/08/2011 | 07:10 | British American Tobacco p.l.c - Transaction in own shares |
| 22/08/2011 | 07:06 | INVS - Investec Bank Limited - The issue of hot enhanced dividend securities |
| 22/08/2011 | 07:05 | Gold One International Limited - Notice of initial substantial holder |
| 22/08/2011 | 07:05 | BHP - BHP Billiton plc - BHP Billiton`s tender offer to acquire Petrohawk |
| 22/08/2011 | 07:05 | INVS - Investec Bank Limited - The issue of hot enhanced dividend securities |
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