Tuesday, 03 January 2012 - 20:00
S.Africa rand starts 2012 firm, volatility to persist
JOHANNESBURG (Reuters) - South Africa's rand firmed to a three-week high against the dollar in a bullish start to the year, as investors unloaded dollars to take on risk on Tuesday.
Government bonds barely moved and volumes remain thin as players drifted back slowly to the markets after the end of year holiday lull. Investors will likely take positions after the government announces next week's auction plans in Wednesday's session.
The rand was firming for the fourth day on Tuesday and traded as strong as 8.02 against the dollar, levels last seen on December 8. It was up 0.7 percent from its previous 8.0750 close in New York trade.
"So far we've opened pretty much risk on. I think that's more a factor of guys wanting to take profits on dollar long positions," said Oliver Alwar a trader at Standard Bank.
"If you look at market positioning, the markets have been short euro for quite some time but going into year end and at the start of the year we've seen people lightening on dollar long positions, that's why we've seen a weaker dollar."
The dollar made about 22 percent worth of gains on the rand in 2011, making the rand one of the worst performing emerging market currencies.
Dealers expect volatility to remain a challenge this year while Europe's debt crisis persists and makes any rand gains difficult.
"It's going to be markets with indecision and no sort of finality," Standard Bank's Alwar added.
Yields on government bonds were little changed on Tuesday with the yield on the 2015 bond closing at 6.73 percent from 6.72 percent on Friday. The 2026 yield ended at 8.49 percent compared with 8.47 percent previously.
Going into the year "the global risk environment - especially how the euro debt situation pans out, the local inflation trajectory and any sign of growth recovery" are likely to be the main themes on the local bond market this year, Di Luo, a fixed income strategist at HSBC Bank said.
Tue, 03 Jan 2012
South African stocks jumped nearly 3 percent in the first trading day of 2012, booking their highest close since early December as better-than-expected Chinese manufacturing data helped drive mining companies higher.
Two cargo ships of yellow maize from Romania are en route to South Africa's Western Cape province for unloading, the head of producer group Grain SA said on Tuesday.
Iran threatened on Tuesday to take action if the U.S. Navy moves an aircraft carrier into the Gulf, Tehran's most aggressive statement yet after weeks of sabre-rattling as new U.S. and EU financial sanctions take a toll on its economy.
The commander of Syria's armed rebels threatened on Tuesday to step up attacks on President Bashar al-Assad's forces, saying he was frustrated with Arab League monitors' lack of progress in ending a government crackdown on protests.
Party agents flooded the streets with banners and verses from the Koran as the third phase of Egypt's parliamentary election began on Tuesday, with Islamists seeking to dominate an assembly that will rival the clout of the ruling generals.
World Markets (Spot Prices)
|JSE Top 40||17:00||29263.24||793.43||2.79%|
|JSE Indust 25||17:00||29305.09||545.45||1.90%|
|Rand / Dollar||19:59||8.0279||-0.0319||-0.40%|
|Rand / Pound||19:55||12.5303||0.0425||0.34%|
|Rand / Euro||19:55||10.4764||0.0375||0.36%|
|Rand / NZD||19:58||6.3362||0.0498||0.79%|
|Rand / AUD||19:55||8.3190||0.0487||0.59%|
|Yen / Dollar||19:59||76.6870||-0.2260||-0.29%|
|Euro / Dollar||19:55||0.7658||-0.0071||-0.92%|
|Dollar / Euro||19:57||1.3048||0.0113||0.87%|
|Pound / Dollar||19:55||0.6387||-0.0056||-0.87%|
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The JSE Today
|Index Name||RP||Move||% Move|
|Financial & Ind. 30||32,471.77||604.99||1.90%|
|Oil & Gas ||29,588.75||416.21||1.43%|
|Oil & Gas Producers ||15,909.33||223.79||1.43%|
|Basic Materials ||29,089.97||1164.82||4.17%|
|Forestry & Paper ||11,881.51||243.27||2.09%|
|Industrial Metals ||30,848.63||842.08||2.81%|
|General Industrials ||81,486.68||1679.70||2.10%|
|Consumer Goods ||29,817.56||695.29||2.39%|
|Automobiles & Parts ||4,438.34||.00||0.00%|
|Health Care ||36,157.61||483.35||1.35%|
|Index Name||RP||Move||% Move|
|Food Producers ||55,938.27||374.76||0.67%|
|Personal Goods ||425.67||18.47||4.54%|
|Consumer Services ||58,465.63||766.52||1.33%|
|General Retailers ||49,187.91||1113.21||2.32%|
|Travel & Leisure ||3,690.52||13.41||0.36%|
|Support Services ||2,199.75||-5.59||-0.25%|
|Non-life Insurance ||34,554.96||46.08||0.13%|
|Life Insurance ||18,036.15||393.93||2.23%|
|General Financial ||2,128.08||19.43||0.92%|
|SHARIAH TOP40 ||3,141.13||104||3.43%|
|FTSE/JSE SHARIAH ALL||3,209.02||98||3.13%|
|FTSE JSE Fledgling ||4,793.45||19||0.40%|
|FTSE/JSE Alt X ||1,258.51||36||2.92%|
|SA LISTED PROPERTY ||391.87||0.85%|
|CAPPED PROPERTY ||320.03||1.04%|
|FTSE/JSE RAFI 40||6,821.70||173||2.60%|
|Capped Top 40||15,395.11||392||2.61%|
|Capped All Share||16,559.30||386||2.39%|
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Latest Consensus Changes**
|APN||ASPEN PHARMACARE HLDGS||HOLD||29 Dec|
|TSH||TSOGO SUN HOLDINGS LIMITE...||BUY||29 Dec|
|GRT||GROWTHPOINT PROPERTIES LI...||HOLD||29 Dec|
|SOL||SASOL LIMITED||BUY||29 Dec|
|ALT||ALLIED TECHNOLOGIES LIMIT...||HOLD||29 Dec||
|Expected||Company Name||Fin. Date|
|09 Jan 2012||ARROWA||September 2011 (Final)|
|09 Jan 2012||ARROWB||September 2011 (Final)|
|NAMPAK 6%P||11-12-08||12-01-20||12-01-30||R 0.0600|
|NAMPAK 6.5||11-12-08||12-01-20||12-01-30||R 0.0650|
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