Monday, 07 November 2011 - 20:00
SAfrica's assets weaker; R186/R157 spread at peak
JOHANNESBURG (Reuters) - The rand weakened for the second consecutive session on Monday, trading around the big 8 figure for most of the day, but came back in the last hour of trade as the euro firmed and the rand in turn showed some recovery but with little impetus in a thin market.
The local unit traded 0.65 percent weaker against the dollar to 7.9564 by 1550 GMT, recovering from 7.99 levels seen most of the session but still fluctuating within its recent range as it moves on investor sentiment dictated by euro zone developments.
Trading volumes were at their lowest in over two months on Monday as investors mostly stayed away and importers were only seen in earnest at the 7.80 levels, dealers said.
"It's probably the levels not enticing importers, and the market is also unsure. We had an interesting weekend (with euro zone developments) and people are still nervous so it may be a case of wait and see," Ion de Vleeschauwer, dealer at Bidvest Bank said about the thin conditions.
The local market has experienced liquidity problems linked to the European crisis and the slowing global economy, seeing a significant amount of investors wait it out on the sidelines until a clear picture emerges.
"Volumes are very thin, liquidity is a major problem. There is no interest so whatever trades we get we clear immediately, we don't try to hold onto them," said a currency trader at a local bank.
Government bond yields had nudged 1.5 basis points higher at the official close to 6.45 percent on the 2015 note and 8.29 percent on the 2026 issue.
The yield differential between the 2026 and 2015 benchmark bonds was trading at Friday's record 184 basis points, pushed higher by the market pricing in a slight chance that the South African Reserve Bank might follow the ECB in reducing the policy rate.
Economists polled by Reuters mostly think the central bank will keep it repo rate steady at 5.5 percent on Thursday, but the bond and futures markets have nevertheless priced in the possibility of a cut.
"The ECB rates last week is seen reflected in the front end of our curve which increased the chances for a rate cut," said Daniel Sabiston, a bond trader at Absa Capital.
"If the market is pricing in an increased chance for a rate cut then the front end outperforms and the (yield) curve steepens, the R186/R157 is a function of that steepening."
Mon, 07 Nov 2011
South Africa's national oil company PetroSA has restarted its 45,000 bpd gas-to-liquids Mossel Bay refinery, its spokesman said on Monday, which. . .
South Africa's Anglo American Platinum (Amplats), the world's largest platinum producer, said on Monday it would implement a 3.5 billion rand. . .
Vodacom Group, the South African unit of Britain's Vodafone Plc, warned it expected leaner growth in the second-half, hit by tougher. . .
Zambia Sugar, the country's largest sugar producer, said on Monday sugar output in the current financial year would be below last. . .
According to Business Day, SA's bellwether cement maker, Pretoria Portland Cement (PPC), said on Friday that the fall in full-year earnings would be smaller than previously thought, as trading conditions were better than expected during September. Domestic cement sales in September rose 12.7% year on year. Sales in the year are up 2.1% although the industry is still reeling from the effects of the global recession and the poor health of building and construction in SA. Recently, PPC CEO. . .
World Markets (Spot Prices)
|JSE Top 40||17:00||29178.13||624.53||2.19%|
|JSE Indust 25||17:00||28895.84||404.49||1.42%|
|Rand / Dollar||19:58||7.9619||0.0773||0.98%|
|Rand / Pound||19:55||12.7284||0.0974||0.77%|
|Rand / Euro||19:55||10.9399||0.0482||0.44%|
|Rand / NZD||19:56||6.3176||0.0381||0.61%|
|Rand / AUD||19:55||8.2368||0.0321||0.39%|
|Yen / Dollar||19:58||78.0520||-0.0850||-0.11%|
|Euro / Dollar||19:55||0.7275||0.0039||0.54%|
|Dollar / Euro||19:57||1.3744||-0.0074||-0.54%|
|Pound / Dollar||19:55||0.6237||0.0013||0.21%|
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The JSE Today
|Index Name||RP||Move||% Move|
|Financial & Ind. 30||31,710.13||582.93||1.87%|
|Oil & Gas ||28,490.84||454.56||1.62%|
|Oil & Gas Producers ||15,319.00||244.41||1.62%|
|Basic Materials ||29,908.70||752.25||2.58%|
|Forestry & Paper ||11,825.85||193.86||1.67%|
|Industrial Metals ||29,735.96||453.65||1.55%|
|General Industrials ||80,131.17||1230.60||1.56%|
|Consumer Goods ||29,375.98||363.46||1.25%|
|Automobiles & Parts ||3,894.87||11.32||0.29%|
|Health Care ||35,033.16||240.78||0.69%|
|Index Name||RP||Move||% Move|
|Food Producers ||51,972.77||329.69||0.64%|
|Personal Goods ||427.47||2.80||0.66%|
|Consumer Services ||58,027.55||392.43||0.68%|
|General Retailers ||48,058.61||432.23||0.91%|
|Travel & Leisure ||3,720.84||13.30||0.36%|
|Support Services ||2,212.11||-17.57||-0.79%|
|Non-life Insurance ||33,463.75||-242.49||-0.72%|
|Life Insurance ||16,126.78||312.57||1.98%|
|General Financial ||2,180.49||35.66||1.66%|
|SHARIAH TOP40 ||3,172.82||72||2.33%|
|FTSE/JSE SHARIAH ALL||3,226.65||66||2.08%|
|FTSE JSE Fledgling ||4,577.10||-4||-0.10%|
|FTSE/JSE Alt X ||1,210.48||60||5.24%|
|SA LISTED PROPERTY ||388.74||0.38%|
|CAPPED PROPERTY ||319.39||0.67%|
|FTSE/JSE RAFI 40||6,688.59||138||2.11%|
|Capped Top 40||15,334.72||328||2.19%|
|Capped All Share||16,420.75||301||1.87%|
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Latest Consensus Changes**
|NED||NEDBANK GROUP LTD||HOLD||03 Nov|
|SBK||STANDARD BANK GROUP LIMIT...||HOLD||03 Nov|
|AIP||ADCOCK INGRAM HLGS LD||HOLD||03 Nov|
|IPF||INVESTEC PROPERTY FUND LT...||HOLD||03 Nov|
|LHC||LIFE HEALTHCARE GRP HLDG ...||HOLD||03 Nov||
|Expected||Company Name||Fin. Date|
|08 Nov 2011||CORONAT||September 2011 (Final)|
|08 Nov 2011||CORONATP||September 2011 (Final)|
|08 Nov 2011||EFFICIENT||August 2011 (Final)|
|08 Nov 2011||MEDCLIN||September 2011 (Interim)|
|08 Nov 2011||PPC||September 2011 (Final)|
|TFG PREF||11-11-03||12-03-15||12-03-26||R 0.0650|
|GRT||Growthpoint Properties Ltd||08/11/2011||Confirmed|
|GRF||Group Five Ltd||08/11/2011||Confirmed|
|MNY||MoneyWeb Holdings Ltd||09/11/2011||Confirmed||
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