Thursday, 26 January 2012 - 20:00
S.Africa rand, bonds hit 2012 highs on global risk rally
JOHANNESBURG (Reuters) - The rand neared a three-month high against the dollar on Thursday, breaking through tough resistance as a global risk rally saw investors turn to higher-yielding assets, pushing South Africa bond yields down 19 basis points as well.
Global markets were buoyed by positive data out of the United States and signals from the U.S. Federal Reserve that interest rates would remain near zero for another few years.
The rand gained 1.4 percent against the dollar to 7.7785 on the day, a level last seen on October 31. The local unit has broken through 8 rand to the dollar and then 7.90 resistance this week but could have its gains capped by good two-way interest.
"There are lots of importers around and probably some exporter panic as well so activity is quite decent," said Ion de Vleeschauwer, dealer at Bidvest Bank.
"I think the South African Reserve Bank will probably buy some dollars at these kind of levels as well to prop up their reserves, but overwhelming positive news is just forcing the rand continually stronger despite all the importer demand," de Vleeschauwer added.
Market players speculated the central bank had been in the market to build up its dollar reserves, prompting the rand to retreat from its highest levels but the amounts were insignificant and the move was countered by risk-on sentiment.
Bond yields fell to two-month lows as prices rallied in tandem with the currency.
"The bond market has been a little crazy, rallying by just under 20 points today and the curve is heading back to where it started the year - steeper," a local bond dealer said.
The yield on the 2015 bond ended at 6.465 percent, down from 6.65 percent on Wednesday while the longer 2026 issue ended at 8.215, down from 8.36 percent previously.
Thu, 26 Jan 2012
The rand neared a three-month high against the dollar on Thursday, breaking through tough resistance as a global risk rally saw investors turn to higher-yielding assets, pushing South Africa bond yields down 19 basis points as well.
South Africa's All-share index closed above 34,000 for the first time in its 17-year history on Thursday, after news the U.S. Federal Reserve will continue to support economic growth lifted stocks and commodities around the world.
Papua New Guinea Prime Minister Peter O'Neill said on Thursday a military mutiny in the Pacific Islands nation was over and the government had regained full control of its military barracks, ending a dramatic day in the country's ongoing political crisis.
Jean-Claude Mas, the Frenchman who sparked a global health scare by selling substandard breast implants, was arrested on Thursday as Marseille prosecutors build a case against him for manslaughter.
A 10-month-old revolt against President Bashar al-Assad edged closer to the Syrian capital on Thursday as troops battled rebels in a town just north of Damascus and a provincial governor spoke of negotiating local ceasefires.
South Africa's rand climbed to its firmest in more than two months against the dollar on Thursday after strong overnight gains based on expectations that U.S. interest rates will stay low for longer than previously expected.. . .
Zain's Sudan unit expects new taxes to slice into its earnings this year despite the anticipated addition of between 2 to 3 million mobile phone subscribers in the oil-producing African country, a senior executive said on Wednesday.. . .
Turnover rose by 29% to R3.2 billion (R2.5 billion) and gross profit grew by 28% to R1.3 billion (R994 million). Operating profit rose by 42% to R426 million (R300 million), while profit attributable to ordinary shareholders of the group improved to R325 million (R234 million). Also, headline earnings per share increased by 28% to 1 024cps (800cps).
Ordinary dividend number 50 of 310cps has been declared and is payable on Monday, 12 March 2012 to ordinary shareholders .. . .
World Markets (Spot Prices)
|JSE Top 40||17:00||30508.85||434.86||1.45%|
|JSE Indust 25||17:00||29842.56||86.43||0.29%|
|Rand / Dollar||19:59||7.7863||-0.0911||-1.16%|
|Rand / Pound||19:55||12.1970||-0.1046||-0.85%|
|Rand / Euro||19:55||10.2389||-0.0808||-0.78%|
|Rand / NZD||19:57||6.3835||-0.0497||-0.77%|
|Rand / AUD||19:55||8.2810||-0.0668||-0.80%|
|Yen / Dollar||19:58||77.4540||-0.2610||-0.34%|
|Euro / Dollar||19:55||0.7602||-0.0029||-0.38%|
|Dollar / Euro||19:59||1.3149||0.0051||0.39%|
|Pound / Dollar||19:55||0.6364||-0.0021||-0.33%|
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The JSE Today
|Index Name||RP||Move||% Move|
|Financial & Ind. 30||33,339.54||174.25||0.53%|
|Oil & Gas ||30,250.91||465.40||1.56%|
|Oil & Gas Producers ||16,265.35||250.23||1.56%|
|Basic Materials ||31,047.07||822.56||2.72%|
|Forestry & Paper ||13,129.63||398.36||3.13%|
|Industrial Metals ||31,372.85||300.06||0.97%|
|General Industrials ||85,219.98||1250.77||1.49%|
|Consumer Goods ||30,729.48||12.95||0.04%|
|Automobiles & Parts ||4,549.30||-2.26||-0.05%|
|Health Care ||36,459.83||-70.20||-0.19%|
|Index Name||RP||Move||% Move|
|Food Producers ||55,721.01||-165.05||-0.30%|
|Personal Goods ||451.04||-.40||-0.09%|
|Consumer Services ||59,956.21||-57.66||-0.10%|
|General Retailers ||50,549.95||-291.52||-0.57%|
|Travel & Leisure ||3,800.05||10.00||0.26%|
|Support Services ||2,334.75||45.42||1.98%|
|Non-life Insurance ||34,140.30||-172.17||-0.50%|
|Life Insurance ||18,646.51||178.56||0.97%|
|General Financial ||2,263.78||28.75||1.29%|
|SHARIAH TOP40 ||3,287.62||65||2.02%|
|FTSE/JSE SHARIAH ALL||3,354.86||62||1.87%|
|FTSE JSE Fledgling ||4,985.17||31||0.63%|
|FTSE/JSE Alt X ||1,220.05||13||1.10%|
|SA LISTED PROPERTY ||404.74||0.07%|
|CAPPED PROPERTY ||329.73||0.30%|
|FTSE/JSE RAFI 40||7,132.89||101||1.43%|
|Capped Top 40||16,009.07||219||1.39%|
|Capped All Share||17,201.04||213||1.25%|
|JSE TABACO ||4,638.50||-61||-1.29%|
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Latest Consensus Changes**
|FFA||FORTRESS INCOME FUND LTD||BUY||24 Jan|
|JSE||JSE LTD||BUY||24 Jan|
|APN||ASPEN PHARMACARE HLDGS||HOLD||24 Jan|
|TSH||TSOGO SUN HOLDINGS LIMITE...||BUY||24 Jan|
|GRT||GROWTHPOINT PROPERTIES LI...||HOLD||24 Jan||
|Expected||Company Name||Fin. Date|
|27 Jan 2012||HUDACO||November 2011 (Final)|
|27 Jan 2012||ZURICH SA||December 2011 (Final)|
|01 Feb 2012||ARROWA||September 2011 (Final)|
|01 Feb 2012||ARROWB||September 2011 (Final)|
|01 Feb 2012||TELEMASTR||September 2012 (Final)|
|PNR FOODS||11-11-28||12-01-27||12-02-06||R 0.4000|
|NAMPAK 6.5||11-12-08||12-01-20||12-01-30||R 0.0650|
|NAMPAK 6%P||11-12-08||12-01-20||12-01-30||R 0.0600|
|LHC||Life Healthcare Group Holdings Ltd||26/01/2012||Confirmed|
|CML||Coronation Fund Managers Ltd||26/01/2012||Confirmed|
|SDH||SecureData Holdings Ltd||26/01/2012||Unconfirmed|
|CMLP||Coronation Fund Managers Ltd||26/01/2012||Confirmed|
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