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By Stella Mapenzauswa and David Dolan
JOHANNESBURG (Reuters) - South Africa's rand fell almost 2 percent to a near 5-week low against the dollar on Monday, the worst performer in a basket of EM currencies, on a global wave of risk aversion that also hit government bonds and sent yields soaring.
Stocks tumbled for the second straight session, falling more than 2 percent as investors hit index heavyweights such as MTN Group as part of a world-wide sell-off on renewed European debt worries.
The rand touched a session low of 7.4099 to the greenback -- its weakest level since August 9 -- and was at 7.40 by 1543 GMT, down from Friday's close at 7.2714.
It fell the most against the dollar among 20 emerging market currencies monitored by Reuters.
"There are just too many negative signals from the global backdrop at this stage, and with local bonds suffering on the back of risk aversion following recent strong rallies, the rand may be taking a hit on the back of that," said Anisha Arora, emerging market analyst at 4CAST.
"There is still feeling of a growing possibility of a rate cut, and the dollar index which the dollar/rand cross closely follows is above key long term trend level - both factors which only further weighs on the rand."
The flight to risk felled government bonds and some traders said the local debt market was also seeing a correction after a recent rally fuelled by growing expectations domestic interest rates could fall to help revive the sluggish economy.
The yield on the 2015 bond jumped as much as 21 basis points to 6.69 percent, its highest level since August 25 according to Reuters data. The yield on the 2026 bond added as much as 30 basis points to a session high of 8.205 percent, a level also last seen 2-1/2 weeks ago.
"I think it's more to do with what's come out of Europe over this weekend -- the nervousness surrounding Greece and the flight to quality away from emerging markets," WWC Securities head of bond trading Marten Banninga said, referring to fears of a debt default in the European state.
South Africa's Top-40 index of blue chips is now on track for its worst monthly performance since August 2010, and some investors say it has fallen too far, given that it has been hit hard by overseas factors, not local fundamentals.
"When the blood is flowing in streets that is when you have to buy," said Abri du Plessis, Chief Investment Officer at Gryphon Asset Management in Cape Town.
"Commodity indicators tell you there's something going on globally in economies that doesn't look too bad. It's negative sentiment that's driving the market."
The Top-40 index finished down 2.1 percent at 26,536.28, its second straight loss. The broader All-share index fell 1.9 percent to 29,855.75.
MTN Group, Africa's largest telecom, tumbled 4.5 percent to 137.50, with trade volume on the stock spiking to its highest level since May.
Platinum miner Impala Platinum, was another hard-hit index heavyweight, falling 4.4 percent to 162.00 rand.
FirstRand Group fell 2.2 percent to 20.05 rand. South Africa's second-largest lender has agreed to pay $5.4 million for Zambian commercial lender Finance Bank, Zambia's central bank said on Monday.
FirstRand is due to report its full-year results before the market opens on Tuesday.
Liquidity on the local debt market had been thin over the last couple of days, meaning some of the bond moves were overdone, Absa Capital trader Daniel Sabiston said.
"We've also got quite a bit of auction supply tomorrow. I guess all of those factors together are really exaggerating the moves," Sabiston added.
The Treasury will offer 1 billion rand worth of the 2021 bond and 1.1 billion rand of the 2031 issue at a weekly auction on Tuesday.
Mon, 12 Sep 2011![[IMAGE]](image.php@width=300&height=150&cropratio=2%253A1&image=%252Fnewsimages%252F2011-09-12T131618Z_01_AJOE78B10V700_RTROPTP_3_OZABS-SAFRICA-BONDS-20110912.JPG "A BANK TELLER LOOKS AT 50 AND 100 SOUTH AFRICAN RAND NOTES.") South African government bonds fell sharply on Monday, sending yields soaring, as investors fled emerging market assets perceived as carrying relatively high risk in the wake of renewed fears of a debt default in Greece. Full story ![[IMAGE]](image.php@width=300&height=150&cropratio=2%253A1&image=%252Fnewsimages%252F2011-09-12T072618Z_01_AJOE78B0KNW00_RTROPTP_3_OZABS-SAFRICA-STOCKS-20110912.JPG "Electronic board displaying movements in major indices is seen at Johannesburg stock exchange in Sandton") South Africa's Top-40 index blue-chip stocks extended losses in afternoon trade on Monday, at one point falling more than 3 percent, as investors sold everything from telecom heavyweight MTN Group to miners such as Imapala Platinum, on concerns Greece was edging closer to default. Full story |
 At least 75 bodies have been recovered after petrol that had spilt into an open sewer caught fire and sent a wave of flame through a densely populated slum in the Kenyan capital, police said on Monday. Full story  Muammar Gaddafi loyalists killed 17 guards outside an oil refinery on Monday in an apparent attempt to disrupt a drive by Libya's new rulers to seize the ousted ruler's last bastions and revive the oil-based economy. Full story  A worker was killed in an explosion at a French nuclear waste site on Monday, but officials said there was no radioactive leak and the authorities quickly declared the emergency over. Full story |
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SA Business |
South African petrochemicals group Sasol, under new leadership since July, will continue looking for lucrative gas assets to boost its production of chemicals and synthetic fuels, its new chief executive said. . . Full story |
Confidence among South Africa's consumers fell in the third quarter, with people taking a gloomy view about the economic outlook and their finances, a survey showed on Monday.. . . Full story |
South Africa's competition regulator will from Monday start hearing an appeal on the proposed merger of Pioneer Hi-Bred, the agricultural unit of U.S. chemicals group DuPont, and a local seed company. . . Full story | ||||
South Africa's FirstRand has agreed to pay $5.4 million for Zambia's Finance Bank, the central bank said on Monday, giving South. . . Full story | South Africa's Sasol Ltd, the world's top maker of motor fuel from coal, defied a stronger rand to post a 27. . . Full story | South Africa's Solidarity trade union said it accepted a wage offer from fixed-line phone company Telkom on Monday, averting a strike. . . Full story | South Africa's rand started the week on the back foot on Monday, hitting a one-month low as investors pulled out of. . . Full story |
Company News |
Pick n Pay welcomed the decision by Metcash Trading Ltd (Metcash) yesterday to notify the Australian Competition and Consumer Commission (ACCC) that following five clear business days it will consider itself. . . Full story |
Sasfin and IQuad Group Ltd ("IQuad") shareholders were advised that Sasfin has acquired 12 042 344 ordinary IQuad shares ("acquisition shares") from Paladin Capital Financial Services Ltd ("Paladin"), representing 42.9% of. . . Full story |
The resolutions which were passed at the meeting were as follows:
*Dr. Mark Bristow, James Campbell, David. . . Full story | ||||
Company Results | Turnover by more than 15% to R142.4 billion (R122.3 billion). Gross profit rose to R52 billion (R43.1 billion) and operating profit. . . Full story | Revenue improved to GBP79.2 million (GBP68.5 million) and mining profit rose to GBP30.8 million (GBP24.7 million). Profit attributable to owners of. . . Full story | Rainbow announce that it has concluded an agreement to acquire the poultry processing operations of Bush Valley Chickens, located near Tzaneen. . . Full story | Revenue for the year increased by 43.5% to R2.4 billion (2010: R1.7 billion). Operating profit rose to R232.9 million (2010: R147.9. . . Full story |
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Click here for the Sharenet Spot Price page
| Date | Adv. | Decl. | Unch. | Actives | Volume | Value | Trades | Orders |
|---|---|---|---|---|---|---|---|---|
| 12/09/2011 | 87 | 264 | 79 | 430 | 337,484,573 | R18,172,527,509 | 123265 | 2529889 |
| 09/09/2011 | 138 | 213 | 77 | 428 | 271,158,160 | R13,021,756,034 | 102094 | 2483214 |
| 08/09/2011 | 232 | 130 | 63 | 425 | 279,645,295 | R14,043,938,105 | 126319 | 2613050 |
| 07/09/2011 | 231 | 114 | 74 | 419 | 290,437,463 | R12,300,423,199 | 108120 | 2473491 |
| 06/09/2011 | 147 | 215 | 80 | 442 | 360,506,606 | R18,898,554,505 | 131856 | 2839983 |
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| Date | Time | Headline |
| 12/09/2011 | 17:36 | Anglo American plc - Treasury Shares - Transfers |
| 12/09/2011 | 17:35 | Zeder Investments Limited - Disclosure of acquisition of shares in |
| 12/09/2011 | 17:31 | Anglo American plc - Anglo American Share Incentive Plan - SIP |
| 12/09/2011 | 17:30 | Zeder Investments Limited - Results of the cash offer by Zeder to all |
| 12/09/2011 | 17:17 | BIDBS - Development Bank of Southern Africa Limited - Listing of Tap Issue |
| 12/09/2011 | 16:50 | Growthpoint Properties Limited - Dealing in securities by a |
| 12/09/2011 | 16:41 | OML - Old Mutual plc - Form 8.3 |
| 12/09/2011 | 16:40 | OML - Old Mutual plc - Form 8.3 |
| 12/09/2011 | 16:25 | FFA/FFB - Fortress Income Fund Limited - Acceptance of linked units in |
| 12/09/2011 | 16:16 | Pick n Pay Stores Ltd - Sale of Franklins |
| 12/09/2011 | 16:00 | Mustek Limited - Director dealing in securities |
| 12/09/2011 | 15:55 | Insimbi Refractory and Alloy Supplies - Trading update |
| 12/09/2011 | 15:50 | Goliath Gold Mining Limited - Change to the board of directors |
| 12/09/2011 | 15:42 | Datacentrix Holdings Limited - Withdrawal of cautionary announcement |
| 12/09/2011 | 14:56 | SFN/SFNP/IQG - Sasfin /IQuad - Disclosure by Iquad of disposal and |
| 12/09/2011 | 13:59 | BIIIPL - iNguza Investments (Proprietary) Limited - Listing of New |
| 12/09/2011 | 13:20 | INL/INP - Investec Limited/Investec plc - Form 8 (DD) |
| 12/09/2011 | 12:32 | BIFR1 - FirstRand Bank Limited - Interest Rate Reset Announcement |
| 12/09/2011 | 12:27 | INL/INP - Investec - FORM 8 (DD) |
| 12/09/2011 | 12:00 | Old Mutual Plc - Old Mutual Plc - Response to the Davies report on women |
| 12/09/2011 | 12:00 | The Foschini Group Ltd - Director Dealing in Securities |
| 12/09/2011 | 11:34 | Basil Read Holdings Limited - Preferred Bidder status awarded on the |
| 12/09/2011 | 11:20 | Bauba Platinum Limited - Change to the board of directors |
| 12/09/2011 | 11:16 | GRTIVC - Investec - Adjustment to strike price announcement on Growthpoint |
| 12/09/2011 | 11:15 | GRTIVB - Investec Warrants - Adjustment to strike price announcement on |
| 12/09/2011 | 10:55 | INL/INP - Investec Limited/Investec plc - Letters of intent |
| 12/09/2011 | 10:20 | Group Five Limited - Preferred Bidder status awarded on the |
| 12/09/2011 | 09:52 | Country Bird Holdings Limited - Dealings in securities |
| 12/09/2011 | 09:50 | INL/INP - Investec Limited - Investec plc - Disclosure in accordance with Rule |
| 12/09/2011 | 09:38 | SOLIDI - Investec Warrants - Declared final dividend announcement on Sasol |
| 12/09/2011 | 09:37 | SOLIHH - Investec - Declared a final dividend announcement on Sasol Limited hot |
| 12/09/2011 | 09:04 | Rainbow Chicken Limited - Acquisition of poultry processing operation |
| 12/09/2011 | 08:14 | EOH Holdings Limited - Reviewed Condensed Consolidated Resultsfor the year |
| 12/09/2011 | 07:48 | Pan African Resources PLC - Audited Annual Results For the year ended 30 |
| 12/09/2011 | 07:22 | BHP - BHP Billiton plc - Notice of Dividend Currency Exchange Rates - 2011 Final |
| 12/09/2011 | 07:22 | Rockwell - Annual and Special General Meeting Results & Strategic Update |
| 12/09/2011 | 07:20 | Billiton Plc - Notification of Change of Interests of Persons Discharging |
| 12/09/2011 | 07:10 | British American Tobacco p.l.c. - Transaction in own shares |
| 12/09/2011 | 07:10 | SYN862 - Synthesis Funding Limited - New Financial Instrument Listing |
| 12/09/2011 | 07:05 | SOL - Sasol Limited - Financial results for the year ended 30 June 2011 |
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