Bonds remained firm but were off the day's best levels in midday trade on Tuesday.
By 11.50am, the benchmark R157 bond was trading at 7.535% from its previous close of 7.580%. The R207 was bid at 8.300% and offered at 8.285% from 8.340% and the R186 was bid at 8.485% and offered at 8.465% from 8.520%.
The rand was bid at R7.0030/$ from its previous close of R7.0040/$.
"It was a good auction. The R203s did well and the R207s cleared at market. We might inch lower today, around the R157s, but it's very quiet. Liquidity is thin, the underlying sentiment I pick up is that the market is more bid than offered," said a local trader.
At its weekly auction, the National Treasury received bids totalling R3.25 billion for R1 billion worth of R203 bonds and bids totalling R2 billion for R1.1 billion worth of R207 bonds.
Meanwhile, Standard Bank analysts said in a report that foreign portfolio involvement in South African debt had seemingly entered a lull, which had set a weaker tone for South African rates more generally.
"However, this evening's Monetary Policy Review could create some interest for the rest of the week," the analysts added.
Foreigners were net sellers of R285.082 million of bonds including repo transactions on Monday after net purchases of R52.896 million of local bonds on Friday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was R166.289 billion on Monday from R59.894 billion on Friday.
Foreigners were net sellers of R470.009 million of bonds excluding repo transactions on Monday after net purchases of R53.266 million of local bonds on Friday.
For the year to date, foreigners have been net buyers of R19.817 billion worth of local bonds, excluding repo transactions. In 2010 foreigners bought net R57.064 billion worth of local bonds, excluding repo transactions.
For the year to date for total transactions, including repo transactions, foreigners have been net buyers of R11.692 billion of local bonds. In 2010 they bought net R44.541 billion worth of bonds.
By Janice Roberts
The rand was steady against the dollar in noon trade on Tuesday as it eyed the euro.
"At the moment the euro is looking well-bid, and it's this and good commodity prices that are keeping the rand steady," a local rand trader said.
"We had German data out this morning and this helped the euro along even more - but this is short term and we need to see how it plays out," he added.
At 11.37am local time, the rand was bid at R7.0037/$ from its previous close of R7.0040/$. It was bid at R9.8673/€ from R9.8570/€ before and at R11.2842/£ from R11.2917/£ at its previous close.
The euro was bid at $1.4103 from $1.4033 before.
Standard Bank's currency strategist, Michael Keenan, confirmed in a note on Tuesday that the rand's performance remained a function of the euro's movements against the dollar.
"The rand weakened yesterday in sympathy with euro depreciation; it then stopped weakening the moment the euro recouped some ground against the dollar."
Meanwhile, Dow Jones Newswires reported that, in the foreign exchange markets, the euro received a boost from Germany's Ifo survey, but remained vulnerable to declines as concerns over the euro-zone sovereign debt crisis persisted.
German business confidence held steady in May near a record high set in February, beating analysts' forecasts and maintaining pressure on the European Central Bank (ECB) to raise interest rates again soon.
"The business cycle traffic lights still signal 'green'," said Ifo president Hans-Werner Sinn.
Ifo's closely watched business climate index came in at 114.2, matching the April reading and above a consensus forecast of 113.7 by analysts polled ahead of time by Dow Jones Newswires.
The measure previously hit a record high of 115.4 in February after nine months of successive increases.
"The German economic miracle keeps going," said Christian Schulz, senior economist at Berenberg Bank in London.
By Zeenat Moorad
Bonds were up to 10 basis points firmer in early trade on Tuesday, mainly on the back of the strong local currency.
The National Treasury will auction R1.0 billion worth of R203 bonds and R1.1 billion worth of R207 bonds at 11.00am.
By 9.06am, the benchmark R157 bond was trading at 7.560% from its previous close of 7.580%. The R207 was bid at 8.330% and offered at 8.300% from 8.340% and the R186 was bid at 8.415% and offered at 8.485% from 8.520%.
The rand was bid at R7.0003/$ from its previous close of R7.0040/$.
"The market hasn't traded that much. We're a couple points lower, mainly on the rand. We have the auction later. The R203s have been relatively well-bid in the secondary market so I think they'll do very well. The R207s haven't really seen that much demand. We expect the market to drift lower towards the end of the day," said a local trader.
Standard Bank analysts said in a morning report that foreign portfolio involvement in South African debt had seemingly entered a lull, which had set a weaker tone for South African rates more generally.
"However, this evening's Monetary Policy Review could create some interest for the rest of the week," the analysts added.
Foreigners were net sellers of R285.082 million of bonds including repo transactions on Monday after net purchases of R52.896 million of local bonds on Friday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was R166.289 billion on Monday from R59.894 billion on Friday.
Foreigners were net sellers of R470.009 million of bonds excluding repo transactions on Monday after net purchases of R53.266 million of local bonds on Friday.
For the year to date, foreigners have been net buyers of R19.817 billion worth of local bonds, excluding repo transactions. In 2010 foreigners bought net R57.064 billion worth of local bonds, excluding repo transactions.
For the year to date for total transactions, including repo transactions, foreigners have been net buyers of R11.692 billion of local bonds. In 2010 they bought net R44.541 billion worth of bonds.
By Janice Roberts
The rand was steady, but vulnerable, against the dollar in early morning trade on Tuesday as it tracked the euro.
"It feels very much like yesterday and we expect a rand dollar range of 6.98 to 7.04 for the day," a local currency trader said.
"But this of course depends on what the euro does - if it moves either way we'll follow it. But it does seem that the euro - for now - is a lot more steady than it was yesterday."
At 8.32am local time, the rand was bid at R6.9965/$ from its previous close of R7.0040/$. It was bid at R9.8223/€ from R9.8570/€ before and at R11.2405/£ from R11.2917/£ at its previous close.
The euro was bid at $1.4050 from $1.4033 before.
RMB's currency analysts John Cairns and Nema Ramkhelawan said in a morning note that after sharp losses yesterday, both the euro and rand looked set to stabilise today.
"On US dollar/rand this implies trade at or even slightly below 7.00 but with choppy and nervous moves. The risk bias is now as follows: no news is good news, allowing slow rand gains; any further news on Eurozone debt problems may generate further sharp rand losses. The latter is a high enough probability to take very seriously."
RMB added that Monday's risky asset sell-off - which also encompassed equities and commodities - was mostly about the PIIGS [Portugal, Ireland, Italy, Greece, Spain], the Greek downgrade, the Spanish elections, the warning over Italy's credit rating (poor Eurozone manufacturing survey (PMI) data that showed a marked slowing in the core economies compounded the weakness).
"There is little new to say - hence why the core view is for a sideways rand move today. Greece remains the main focus for now. Also creeping back into focus are Spain and Italy: their credit spreads widened to their biggest level since January yesterday. As we have always said, a spread of the problems into these countries would generate a crisis of a whole different scale."
RMB said that from the rand perspective, euro/US dollar remained the litmus of the problems.
"Having dropped below 1.4000 for a two-month low of 1.3968, the market has regained 1.4050 this morning. The break into the new lows though, signals the trend is still for euro weakness. This creates major risks for the US dollar/rand. Most importantly, continued euro weakness would mean the natural bias on US dollar/rand would switch to going higher from going lower."
RMB added that it awaited news on the PIIGS to give it direction "but for today the major event is the German IFO business confidence index at 10.00."
Meanwhile, Dow Jones Newswires reported that the euro stayed steady but vulnerable to further declines Tuesday as concerns over the euro-zone sovereign debt crisis showed no signs of abating, with traders in Asia bracing for further negative news for the currency to turn up in the coming days.
Although the euro was mostly steady against the dollar in Asian trading amid the absence of fresh bad news, anxiety over sovereign risk woes in Europe - particularly in Greece - has weighed on the single currency, which prodded investors to flee to safe-haven currencies like the Swiss franc, the dollar, and the yen, traders said.
"There have been a lots of news and comments regarding (the debt problems) but nothing that can bring relief to the market," said Kuniyuki Hirai, a foreign exchange division manager at Bank of Tokyo-Mitsubishi UFJ. This sort of anxiety should make the euro vulnerable to further falls, he added.
Hirai said the euro could stay in a $1.35 to $1.45 range by the end of June when some measures to solve the Greek debt problems might be hammered out.
Traders were keeping an eye on German Ifo Business Climate Index for May due at 4.00am GMT, with a forecast of economists polled by Dow Jones Newswires showing that the Business Sentiment Index would fall to 113.7 from 114.2 the previous month.
"The market has been paying little attention to economic and inflation data. Still a weaker-than-expected reading should have a lasting impact to push (the euro) lower," said Hirai.
Junya Tanase, chief currency strategist at JPMorgan in Tokyo, also said "there hasn't been a correlation between Ifo data and the euro. But given the present weakness in the euro, a worse-than-expected reading could lead to a tumble in the euro at least in the near term."
By Janice Roberts
The rand fell against the dollar in late afternoon trade on Monday as it tracked a troubled euro.
"We are obviously getting reaction this week from Asia and Europe to what happened last week - things like the Greece downgrade and the Spanish protests and elections, not to mention the downgrade of Italy," a local currency analyst said.
"This doesn't bode well for the euro. Bond yields in most European countries are surging higher. It's really a case of sentiment bombing out and this gives a boost to the US dollar."
He added that if the rand broke above 7.05 to the dollar - a level that was tested last week - the market could be looking at levels of 7.10 to 7.12.
At 3.27pm local time, the rand was bid at R7.0109/$, down 1.61% from its previous close of R6.9220/$. It was bid at R9.8437/€ from R9.7845/€ before and at R11.3072/£ from R11.2102/£ at its previous close.
The euro was bid at $1.3996 from $1.4103 before.
Meanwhile, Dow Jones Newswires reported that currency markets were in nervous mode on Monday, after a raft of negative news created a toxic mix for risk sensitive currencies and boosted currencies seen as safe retreats, such as the Swiss franc, which hit a series of record highs against the euro.
The euro and the Australian dollar were both hit by the latest developments in the euro-zone debt crisis and by news from China that economic growth has shuddered to its slowest level for 10 months. The European currency sank to a new record low against the Swiss franc at CHF1.2337 and it was trading below $1.40 against the dollar, its lowest level since late March.
Reflecting crumbling investor confidence, equities traded sharply lower both in Asia and Europe, while oil prices shed about 2.6% on Monday as investors sounded a retreat from risky assets.
Worries about Greece's public finances intensified after Fitch Ratings downgraded Greek sovereign debt by three notches to "B+" from "BB+" on Friday, while concerns that the crisis might spread to other countries were elevated when Standard & Poor's cut its outlook on Italian government debt to "negative" from "stable" Saturday.
"There is a huge amount of fear and uncertainty in the market at the moment," said Jane Foley, a currency strategist at Rabobank in London, adding that Greece's debt situation was as severe as it had ever been and euro-zone officials had failed to come up with a unified and clear solution to the problem.
Last week, suggestions that Greece's government debt could be restructured caused consternation from European Central Bank (ECB) president Jean-Claude Trichet, when he said such paper would no longer be accepted as collateral after such a move.
"The ECB is playing hardball for now, which leaves us very confused as to what will happen next," Foley added.
Adding to euro negative developments, Spain's ruling party suffered ugly losses in the country's local elections over the weekend, reinforcing fears that the country could be forced to hold an early general election, which could hamper the government's efforts to force through cost-cutting measures.
Similarly, German Chancellor Angela Merkel's CDU party lost out in a local vote in Bremen, also reflecting public unease over bailouts.
"The week is starting in a decidedly fearful mode, with the spillover from Friday's concerns about a Greek debt restructuring still dominating markets," Kit Juckes, chief currencies strategist at Societe Generale, wrote in a note to clients. Juckes added that the revision to Italy's debt outlook had amplified fears that debt woes may spread to other European countries.
"Now the risk is that contagion effects spread into the core, with countries like Belgium likely to be next for a downgrade," said Neil MacKinnon, an analyst at VTB Capital in London.
The euro had shed about 6% of its value against the dollar since the beginning of May and it broke below the $1.40 level against the greenback in London trading.
"This move is starting to look like capitulation," said Citigroup in a note to clients, adding that there was a good argument to be made for a move to $1.3550 in the short term.
Adding to the strain, data showed that growth in the euro zone's private sector eased more than expected to its weakest pace in seven months in May, led by a sharp slowdown in manufacturing, the preliminary results of a survey by financial information firm Markit showed on Monday.
The flash reading of the euro zone's Composite Output Index, a gauge of activity based on partial results of a survey of manufacturing and services firms, dropped to 55.4 in May from 57.8 in April. A reading above the neutral 50 level indicates an expansion in activity. In the breakdown, German readings also stumbled.
Risk-negative headlines poured out of Asia as well. The Chinese purchasing managers' index (PMI) data printed at a 10-month low of 51.1 in May from a final reading of 51.8 in April, adding to concerns of an economic slowdown in China, while Moody's Investors Service warned that the sharper than expected fall in Japan's post-quake economic output posed credit risks.
By Evan Pickworth
A softer rand forced bonds onto the back foot on Monday, with the market down around four basis points on the day.
By 3.45pm, the benchmark R157 bond was trading at 7.590% from its previous close of 7.550%. The R207 was bid at 8.355% from 8.300% and the R186 was trading at 8.520% from 8.465%.
The rand was bid at R7.0029/$ from its previous close of R6.9220/$.
"It is largely a rand play, while the longer end is looking better offered. Someone is probably squaring a position," said a local bond dealer.
Another dealer said there wasn't much depth in the market.
Standard Bank analysts said in a report that highlights of the week for South African rates were set to be the SA Reserve Bank's bi-annual Monetary Policy Review on Tuesday evening and April's producer price index (PPI) report on Thursday morning.
"Other data flow from SA is second- or third-tier in nature. Near-term direction is thus set to be dictated by external developments, especially those influencing appetite for emerging-market local currency debt. Price action in the bonds is suggesting that this appetite could be either taking a pause or running into valuation headwinds," they said.
Foreigners were net buyers of R52.896 million of bonds including repo transactions on Friday after net sales of R113.464 million of local bonds on Thursday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was R59.894 billion on Friday from R65.635 billion on Thursday.
Foreigners were net buyers of R53.266 million of bonds excluding repo transactions on Friday after net sales of R95.305 million of local bonds on Thursday.
For the year to date, foreigners have been net buyers of R20.297 billion worth of local bonds, excluding repo transactions. In 2010 foreigners bought net R57.064 billion worth of local bonds, excluding repo transactions.
For the year to date for total transactions, including repo transactions, foreigners have been net buyers of R12.454 billion of local bonds. In 2010 they bought net R44.541 billion worth of bonds.
By Artwell Dlamini
The JSE extended losses and looked even more fragile at noon on Monday, as investors worldwide panicked over the revival of sovereign debt troubles in Europe.
"The key word is contagion. The focus in the euro zone has shifted beyond Greece," said Drikus Combrinck, portfolio manager at PSG Konsult.
By 12.03pm local time, the JSE all-share index had lost 1.71%, with resources easing 1.96% and platinum miners falling 1.63%. Banks also dropped 1.77%, financials slid 1.42% and industrials shed 1.66%. Gold miners, however, climbed 0.69%.
The rand was bid at R7.00/$ from R6.91/$ at the JSE's close on Friday. Gold was quoted at $1,510.63 a troy ounce from $1,507.73/oz at the JSE's previous close, while platinum was at $1,754.50/oz, from $1,767/oz previously.
"The market is getting cautious about something big," Combrinck said, adding that there was political uncertainty over Spain, with the government hanging in the balance, heightening fears about whether the country would carry out its commitment to cut the budget deficit.
Dow Jones Newswires reported that European stocks were lower on Monday amid further evidence of the financial threat facing the euro zone's peripheral nations, adding further negative sentiment to a market that has recently been struggling to make and maintain gains.
Additionally, growth in the euro zone's private sector eased more than expected to its weakest pace in seven months in May, led by a sharp slowdown in manufacturing, the preliminary results of a survey by financial information firm Markit showed on Monday.
The euro zone's manufacturing Purchasing Managers' Index dropped much more than expected to 54.8 in May from 58.0 in April. Economists had predicted a manufacturing reading of 57.5.
At 8.25am GMT, the Stoxx Europe 600 was 1.3% lower at 275.97, the FTSE 100 was off 1.6% at 5,850.68, Germany's DAX lost 1.7% to 7,141.27, and France's CAC-40 was down 1.8% at 3,918.09.
Over the weekend, and after Fitch rating agency cut its rating on Greece late last week, Standard & Poor's downgraded its outlook on Italy's government debt to "negative" from "stable".
On the JSE, Anglo American slid R9.20 or 2.80% to R319.80, Sasol fell R8.49 or 2.39% to R346.51 and BHP Billiton lost R5.52 or 2.10% to R257.90.
Among gold counters, Gold Fields rose R1.18 or 1.10% to R108.23.
Platinum miner Angloplat eased R10.20 or 1.64% to R611.80 and Impala Platinum dropped R2.98 or 1.63% to R180.02.
Diversified miner African Rainbow fell R3.51 or 1.76% to R195.99 and Exxaro plunged R6.74 or 4.13% to R156.26.
Exxaro and Australian group Territory Resources have executed a bid implementation agreement under which Exxaro will offer to acquire up to 100% of the fully paid ordinary shares in Territory by way of an off-market takeover bid, the parties announced on Monday.
The offer price is AU$0.46 per share, which represents a 64% premium to Territory's last closing share price of AU$0.28 per share. The total equity value of the takeover offer is AU$123 million.
Kumba Iron Ore was off R13.24 or 2.97% to R432.25.
In the industrial sector, Bidvest edged down R3.26 or 2.16% to R147.74 and SABMiller was down R3.31 or 1.31% at R249.75.
Telecommunications group Telkom declined 90 cents or 2.39% to R36.80 and mobile phone operator Vodacom shed R1.56 or 1.92% to R79.61.
Technology group Altech plummeted R4.93 or 7.70% to R59.07. A trader said Altech went ex-dividend today, sparking a sell-off.
Banker Standard Bank gave up R2.13 or 2.13% to R97.73, and Nedbank lost R3.02 or 2.11% to R140.15.
Microlender Abil eased 52 cents or 1.52% to R33.68, despite boosting its headline earnings by 20% from R914 million to R1.095 billion for the six months ending on March 31.
Headline earnings per share increased by the same margin to 136.3 cents from 113.7 cents for the previous comparable half-year. The group declared an interim dividend of 85 cents, which was unchanged for the same period last year. The group also declared an interim preference share dividend of 310 cents per share.
Logistics and transport company Super Group was flat at 80 cents after announcing that it expected to report a consolidated net profit after taxation for the year ending June 30 of between R342 million and R374 million.
This will result in earnings per share (including losses from discontinued operations) of between 9.5 cents and 10.5 cents, and headline earnings per share of between 10.0 cents and 11.0 cents, the group stated in a trading statement.
Retailer Lewis Group rose 41 cents to R77.01. The company on Monday reported headline earnings per share were up 21.6% to 781.1 cents for the year ending on March 31.
Earnings per share were at 807.2 cents, from 672 cents earlier. A final dividend of 207 cents was declared. The operating profit margin increased to 23%, which translated into 16% growth in operating profit, which reached the R1 billion mark.
Pioneer Food tumbled R1.80 or 3.11% to R56.00. It said it boosted headline earnings by 193% to R422 million for the six months ending on March 31.
This translated into diluted headline earnings per share of 231.4 cents versus 80.3 cents for the previous comparable half-year. The group declared an interim dividend of 40 cents.
Food and beverages company Famous Brands fell R1.06 or 2.42% to R42.75 after reporting a 17% rise in diluted headline earnings per share to 237 cents for the year ending in February 2010 from 202 cents a year ago.
Headline earnings per share were also up 17% to 242 cents. Revenue was up 11% to R1.9 billion, while operating profit grew 16% to R358 million.
By Zeenat Moorad
Bonds were a few points weaker in midday trade on Monday, driven by the softer rand.
By 11.50am, the benchmark R157 bond was trading at 7.590% from its previous close of 7.550%. The R207 was bid at 8.360% and offered at 8.330% from 8.300% and the R186 was trading at 8.530% and offered at 8.510% from 8.465%.
The rand was bid at R7.0039/$ from its previous close of R6.9220/$.
"We're largely weaker and it's rand-driven. There's not much depth in the market. We saw some foreign interest last week, which gave the market some support, but we're not seeing a lot of the local institutions getting involved. It's largely been driven by foreign interest. Because they've been net buyers, the market's moving in the right direction," said a local trader.
Standard Bank analysts said in a report that highlights of the week for South African rates were set to be the SA Reserve Bank's bi-annual Monetary Policy Review on Tuesday evening and April's producer price index (PPI) report on Thursday morning.
"Other data flow from SA is second- or third-tier in nature. Near-term direction is thus set to be dictated by external developments, especially those influencing appetite for emerging-market local currency debt. Price action in the bonds is suggesting that this appetite could be either taking a pause or running into valuation headwinds," they said.
Foreigners were net buyers of R52.896 million of bonds including repo transactions on Friday after net sales of R113.464 million of local bonds on Thursday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was R59.894 billion on Friday from R65.635 billion on Thursday.
Foreigners were net buyers of R53.266 million of bonds excluding repo transactions on Friday after net sales of R95.305 million of local bonds on Thursday.
For the year to date, foreigners have been net buyers of R20.297 billion worth of local bonds, excluding repo transactions. In 2010 foreigners bought net R57.064 billion worth of local bonds, excluding repo transactions.
For the year to date for total transactions, including repo transactions, foreigners have been net buyers of R12.454 billion of local bonds. In 2010 they bought net R44.541 billion worth of bonds.
By Janice Roberts
The rand was softer against the dollar in noon trade on Monday as it tracked a sliding euro and risk appetite took another blow.
"The rand wasn't as weak early this morning as it is now," a local currency trader said.
"But the euro really came off strongly against the dollar in the late morning due to mounting sentiment problems in the euro zone," he added.
At 11.46am local time, the rand was bid at R7.0051/$ from its previous close of R6.9220/$. It was bid at R9.8040/€ from R9.7845/€ before and at R11.2916/£ from R11.2102/£ at its previous close.
The euro was bid at $1.3995 from $1.4103 before.
In a note on Monday morning, RMB currency strategists John Cairns and Nema Ramkhelawan said that rand weakness risks had re-emerged.
"The PIIGS [Portugal, Ireland, Italy, Greece and Spain] crisis is the focus.
"Greece is the main concern as Fitch downgraded the country once again and as talk continues of a possible debt restructuring. Their cabinet will be meeting today to agree on new austerity measures."
At stake was a €12 billion tranche of the bailout agreed last year and due to be handed over next month.
"Italy, meanwhile, was put on negative watch by S&P, while Spain's ruling socialist party got hammered in local government polls, raising questions about voters' acceptance of continued austerity measures," RMB added.
Meanwhile, Dow Jones Newswires reported that further evidence of the financial threat facing the euro zone had appeared.
Growth in the euro zone's private sector eased more than expected to its weakest pace in seven months in May, led by a sharp slowdown in manufacturing, the preliminary results of a survey by financial information firm Markit showed on Monday.
The euro zone's manufacturing Purchasing Managers' Index dropped much more than expected to 54.8 in May from 58.0 in April. Economists had predicted a manufacturing reading of 57.5.
By Gareth Vorster
Despite a late rally from its worst levels, South African near-dated futures ended marginally lower on Friday, tracking sentiment in the US amid continued concerns over Greece's fiscal woes.
The local near-dated Alsi contract ended 41 points or 0.14% lower at 28,851.
The rand was bid at R6.9015/$, compared with R6.8629/$ in the previous session, while gold traded at $1,514.10/oz from US$1,490/oz when the bourse last traded.
A total of 36,533 contracts changed hands on Friday from 32,423 on Thursday.
A local dealer noted a weaker Wall Street amid continued concerns over Greece.
Dow Jones Newswires reported that US stocks fell on Friday as the euro slid amid further debt-crisis worries and investors digested troubling profit reports from a couple of US apparel retailers.
The declines come as Greek and Spanish bond yields soared amid concerns about a possible restructuring of Greek debt.
In a sign of the increased pressure on European politicians to spread mounting bailout costs, the International Monetary Fund (IMF) said the European Union needed to devise a new plan to solve the continent's debt crisis. That follows the European Central Bank's warning it may pull the plug on funding for Greek banks in the event of debt restructuring.
"Whenever you have two entities like governments and the European Central Bank at odds, it makes for an uncertain situation," said Anthony Chan, chief economist for JP Morgan Private Wealth Management.
Chan predicted that the impasse wouldn't be permanent, as central bankers have previously buckled from hard-line positions. But for the time being, the situation could weigh on the stock market.
By Ntsakisi Maswanganyi
News of a downgrade in Greece's foreign and local-currency ratings led global stocks and the JSE weaker on Friday afternoon. The local bourse ended the week 124 points weaker.
By 5pm local time, the JSE all-share index was off 0.39%, with banks falling 0.78%, resources 0.70% lower, and financials off 0.35%.
Gold miners shed 0.30%, while industrials gave up 0.12%. Platinum miners were flat (-0.06%).
The rand was bid at 6.91 to the dollar from 6.89 at the JSE's close on Thursday.
Gold was quoted at $1,507.73/oz from $1,489.42/oz at the JSE's previous close, while platinum was at $1,767/oz, from $1,765.50/oz previously.
A local trader said the JSE moved south after news of a downgrade in Greece by ratings agency Fitch. Fitch Ratings downgraded Greece's junk-level long-term foreign and local-currency ratings three notches, citing the scale of the country's challenge in securing solvency.
The ratings agency lowered the ratings to B+, four steps below investment grade, from BB+ and placed them on watch for further cuts.
The ratings decision led to "heightened risk aversion" by investors according to the trader, which also saw the dollar strengthen against other currencies.
Dow Jones Newswires reported that US stocks opened slightly lower on Friday as a dearth of economic data and troubling profit outlooks from some retailers prompted some downbeat investor sentiment.
The Dow Jones Industrial Average fell 24 points to 12,582 as Chevron and Home Depot led the decliners.
The Standard & Poor's 500-stocks index dropped three points to 1,340, hurt by the materials and consumer discretionary sectors. The technology-oriented Nasdaq Composite declined four points to 2,819.
The action follows two straight days of gains for the blue-chip Dow and S&P 500 as the frenzy surrounding LinkedIn's share price on Thursday spurred hopes that future initial public offerings will lure more investors into risky assets. LinkedIn shares, which more than doubled yesterday, were recently up 8% at US$102.
Trading, which was relatively light on Thursday, is expected to remain below average on Friday as a lack of economic data likely won't spur much conviction in either direction.
"People are digesting the economic news from [Thursday] and may try to lighten their exposure heading into the weekend," said Gerald Buetow, chief investment officer at Innealta Capital, a division of Al Frank Asset Management.
On the JSE, Anglo American was down R2.55 to R329, BHP Billiton shed R2.74 or 1.03% to R263.42 and Sasol lost R2.47 to R355.
Among gold counters, Anglogold Ashanti gave up 83 cents to R311 and Harmony fell R1.34 or 1.45% to R91.15.
Amplats surged R5 to R622, and Northam Platinum advanced 75 cents or 1.69% to R45, while Aquarius garnered 59 cents or 1.55% to R38.59.
Exxaro was 95 cents lower at R163 and diversified miner African Rainbow shed 60 cents to R199.50.
In the industrial sector, BAT added R3.45 or 1.14% to R306.95 and SABMiller lost 53 cents to R253.06.
Bidvest was 60 cents better off at R151.
Technology stock Datatec was down 40 cents or 1.05% at R37.60.
Telecoms group MTN shaved off 99 cents to R139.91.
Absa fell R3.20 or 2.34% to R133.55, while RMB Holdings shed 39 cents to R27.01.
Retailer JD Group slipped R1.15 or 2.61% lower to R42.85.
Media group Naspers grew R2.46 to R393.
Construction group Group 5 was 85 cents down or 2.90% to R28.50 and Aveng fell 72 cents or 2.11% to R33.35.
At 17:00 local time (15:00 GMT)
TRADE CLOSE PERC POINTS
ALL SHARE
(J203) 31794.13 31918.93 -0.39 -124.80
INDUSTRIALS
(J257) 32837.00 32877.78 -0.12 -40.78
FINANCIALS
(J580) 21469.12 21545.20 -0.35 -76.08
RESOURCES
(J210) 54024.53 54405.57 -0.70 -381.04
GOLD
(J150) 2556.56 2564.17 -0.30 -7.61
PLATINUM
(J153) 70.13 70.17 -0.06 -0.04
BANKS
(J835) 40149.68 40465.90 -0.78 -316.22
Value traded
12.192 billion
Volume 281.193 million shares
Highest value traded shares:
Anglo
R329.00 down R2.55
BHP
Billiton R263.42 down R2.74
MTN
R139.91 down R0.99
British American Tobacco
R306.95 up R3.45
SAB
R253.06 down R0.53.
By Edward Tsumele
The South Africa African musicians community is shocked by the death of internationally
renowned singer and songwriter Joe "Kolie" Mogotsi.
Mogotsi, died at a Johannesburg hospital in the early hours of yesterday morning after a short illness.
Mogotsi, 87, was a member of the famous Manhattan Brothers.
Gallo Music Group, which had a long relationship with the Manhattan Brothers, confirmed the death of the iconic musician and said funeral arrangements had not been discussed yet.
Mogotsi was a singer and composer from the old Sophiatown cultural melting pot.
He was a member of probably the most prominent South African musical exports to date - the Manhattan Brothers - and was still active, composing and performing.
He was one of only two surviving original members of vocal quartet and the biggest name in black South African music during the late 1940s and 50s. The other surviving member is London-based Rufus Khoza.
Mogotsi, who was popularly known as Kolie, was a prolific composer and lead singer of the globally renowned group.
The Manhattan Brothers was formed in the early 30s, and was one of the most influential groups in the history of South Africa's music. The group consisted of four vocalists.
"Man, I cannot believe this. So now, I'm the only one left," commented Khoza yesterday when he learnt of his colleague's death.
Some of South Africa's greatest musicians that performed or recorded with the group over the years include Hugh Masekela, Miriam Makeba, Mackay Davashe, Kippie Moeketsi and Jonas Gwangwa.
"We are saddened by the sudden passing of Uncle Joe. Our country has lost one of its musical giants and he will be solemnly missed," said Arnold Mabunda a music publisher at Gallo Music Group.
In 1959 the four members of the band joined the company of King Kong, the first black South African musical and toured with it to England, where they decided to remain.
Sipho "Hotstix" Mabuse likened the emergence of the Manhattan Brothers to the emergence of South African music itself.
"Bra Joe was the epitome of what South African music became, and most successful musicians such as Hugh Masekela, Miriam Makeba, Caiphus Semenya and myself included, owe our musical career to the Manhattan Brothers."
He said Mogotsi's passing was a huge loss.
By Gareth Vorster
The JSE added more than 300 points or 1% by midday on Friday, boosted by good demand for commodities, a local dealer said.
By 12.00pm local time, the JSE all-share index gathered 1.01% with resources up 1.13%, platinum miners gained 1.64%, and gold miners firmed 1.18%.
Banks swelled by 0.98%, financials were 0.91% stronger and industrials were up 0.98%.
The rand was bid at R6.88/$ from R6.89/$ at the JSE's close on Thursday. Gold was quoted at $1,501.65 a troy ounce from $1,489.42/oz at the JSE's previous close, while platinum was at $1,768.50/oz, from $1,765.50/oz previously.
"We are seeing good demand for commodities pushing prices up. Add to that some basement buying after the market moved sideways for the past few weeks," the dealer said noting relatively thin volumes on the day so far.
Dow Jones Newswires reported that US stocks were expected to open marginally higher on Friday, helped by gains across Europe amid rising commodity prices, said David Morrison of GFT.
The dollar was lower against rivals, suggesting the recent rally in the greenback was running out of steam, Morrison said. "This should help to underpin risk assets," he added.
Despite what's expected to be a marginally positive start, Morrison notes that there are no major economic data due for release, while volatility may be higher as monthly options on individual stocks and stock indexes are due to expire.
Asian stock markets were mixed on Friday, and many bourses struggled to advance despite Wall Street's rise on Thursday, with the Japanese market capped by caution about the economic outlook and losses in the utilities sector.
Japan's Nikkei Stock Average was flat, Australia's S&P/ASX 200 fell 0.5%, and South Korea's Kospi Composite gained 0.7%. Hong Kong's Hang Seng Index rose 0.2%, Taiwan's main index fell 0.6%, and the Shanghai Composite index added 0.1%.
On the JSE, Anglo American added R4.56 or 1.38% to R336.11, BHP Billiton improved by R1.61 to R267.77 and Sasol pocketed R5.19 or 1.45% to R362.66.
Among gold counters, Anglogold Ashanti rose R3.27 or 1.05% to R315.10 and Gold Fields added 179 cents or 1.68% to R108.59.
Platinum miner Impala Platinum rose R3 or 1.63% to R187, Amplats surged R11.99 or 1.94% to R628.99, and Northam Platinum advanced 84 cents or 1.90% to R45.09.
Lonmin profited R3.75 or 2.19% to R174.98.
Kumba Iron Ore gathered R7.29 or 1.63% to R453.45 and diversified miner African Rainbow garnered R1.60 to R201.70.
In the industrial sector, BAT added R2.50 to R306 and SABMiller improved by R5.14 or 2.03% to R258.73.
Bidvest was R1.49 better off at R151.89.
Telecoms group MTN found R2.20 or 1.56% to R143.10.
Standard Bank gained R1.20 or 1.2% to R101.09, along with Nedbank, R1.71 or 1.19% better off at R145.61.
Financial services group Investec picked up R1.13 or 2.09% to R55.12, while Old Mutual gained 25 cents or 1.72% to R14.79.
Santam rose R1.50 or 1.18% to R129, and Discovery rose 58 cents or 1.52% to R38.85.
Logistics and transport company Cargo Carriers fell R1.20 or 11.76% to R9 after reporting a decline in headline earnings per share to 48.5 cents for the year ending in February from 118.8 cents a year ago.
The company said that overhead costs relating to the business establishment of new contracts, an increase in wage costs (higher than inflation) and a provision for bad debt of R4.7 million all contributed to the 32.7% decrease in earnings per share of 32.7% and 59.2% decline in headline earnings per share.
Retailer JD Group slipped 71 cents or 1.61% lower to R43.29.
Wilderness Holdings was last at R5.55. The company said on Friday that its results for the year ending in February were likely to be significantly higher from those achieved in the comparative period, mainly due to the sale of capital assets during the period.
However, the group's operating results would be lower than those of the comparative period, it said.
Shareholders and investors were advised to exercise caution when trading in the company's securities until the release of the results on or about May 27.
Media group Naspers grew R2.91 to R393.45.
By Zeenat Moorad
Bonds were up to seven basis points firmer in midday trade on Friday, after a bout of foreign buying of longer-dated stock.
By 11.55am, the benchmark R157 bond was trading at 7.535% from its previous close of 7.540%. The R207 was trading at 8.285% and offered at 8.270% from 8.295% and the R186 was trading at 8.430% and offered at 8.425% from 8.500%.
The rand was bid at R6.8919/$ from its previous close of R6.8573/$.
"From what we've picked up, offshore accounts came in to pick up longer-dated stocks - R186s and R219s - bringing yields a lot lower. We traded down to 7.50 but are up to 7.53 - so we're off the day's levels but still better bid. The inflation-linked auction went very well, guys are looking to pick up the R212s - that's the most favourite bond there," said a local trader.
Meanwhile, Standard Bank said in a report that South African bonds were at, or approaching, recent resistance levels.
"A strong run over the whole of this week could see yields struggle to break significantly lower today, as short-covering appears to have run its course and some profit-taking is due," the analysts said.
With no local data due today, local markets will continue to eye their international counterparts for direction.
Foreigners were net sellers of R113.464 million of bonds including repo transactions on Thursday after net purchases R495.074 million of local bonds on Tuesday, Bond Exchange of South Africa statistics show. Markets were closed on Wednesday for a public holiday.
Nominal cumulative volume was R65.635 billion on Thursday from R58.753 billion on Tuesday.
Foreigners were net sellers of R95.305 million of bonds excluding repo transactions on Thursday after net purchases of R492.959 million of local bonds on Tuesday.
For the year to date, foreigners have been net buyers of R19.764 billion worth of local bonds, excluding repo transactions. In 2010 foreigners bought net R57.064 billion worth of local bonds, excluding repo transactions.
For the year to date for total transactions, including repo transactions, foreigners have been net buyers of R11.925 billion of local bonds. In 2010 they bought net R44.541 billion worth of bonds.
