Bizcast

Pre-weekend markets

lindsay — Fri, 19 Mar 2010 16:40:36 +0000

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I-Net Bridge with the markets, Lindsay and Liston with the commentary. Will we regret the long weekend?

The weekly wrap

lindsay — Fri, 19 Mar 2010 16:38:33 +0000

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Liston Meintjes is in studio while Lindsay Williams selflessly takes time off from his field trip to review the week that saw world and local markets go to fresh 2010 highs.

Moody’s fears social unrest as AAA states implement austerity plans

lindsay — Fri, 19 Mar 2010 12:12:56 +0000

The US rating agency said the US, the UK, Germany, France, and Spain are walking a tightrope as they try to bring public finances under control without nipping recovery in the bud. It warned of “substantial execution risk” in withdrawal of stimulus.

“Growth alone will not resolve an increasingly complicated debt equation. Preserving debt affordability at levels consistent with AAA ratings will invariably require fiscal adjustments of a magnitude that, in some cases, will test social cohesion,” said Pierre Cailleteau, the chief author.

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Stocks Mid: JSE suffers futures closeout hangover

lindsay — Fri, 19 Mar 2010 12:10:10 +0000

   Johannesburg, Mar 19 (I-Net Bridge) – The JSE was soft in midday trade on Friday, suffering from a futures closeout hangover.
    By 12:00 the JSE all share index had given up 0.49%, with resources 0.52% softer. Gold miners were down 0.66% and platinum miners declined 0.48%.
    Banks were 0.56% worse off, financials dropped 0.37% and industrials moved 0.52% lower.
    The rand was bid at 7.31 to the dollar, from 7.29 when the JSE’s closed on Thursday. Gold was quoted at US$1,122.14 a troy ounce from US$1,122.21/oz at the JSE’s last close. Platinum was at $1,622/oz from $1,629/oz at the JSE’s last close.
    A local trader said: “The local bourse is suffering from a futures closeout hangover today. Global markets are trading quite positively, but locally, commodities are pushing us down.”
    Dow Jones Newswires reported European stocks were led higher by bank shares on Friday after Lloyds Banking Group said it expects to return to profit this year and positive sentiment on Wall Street had helped to lift confidence.
    “The main impact on the equity market this morning has to be Lloyds’ trading update. Expectations of a return to profit have sent the shares flying, up 8% this morning, pulling the other banks along with them,” said Sam Wright, equity trader at Spreadex.
    “Plenty of bears are getting squeezed out of their positions in yet another move higher on the banks and broader market,” Wright added.
    By 09:15 GMT, London’s FTSE 100 was 0.4% higher at 5,663.1, Frankfurt’s DAX rose 0.1% to 6,015 and Paris’s CAC-40 gained 0.2% to 3,947.5.
    The FTSE was also boosted by a note from Credit Suisse, which upgraded the UK equity market to benchmark from underweight in local currency terms, largely due to the play on sterling.
    Corporate news was otherwise slow Friday, with traders keeping a watchful eye on the Greek debt situation and whether the debt-laden country will eventually have to turn to the International Monetary Fund. Meanwhile, some volatility could be on the cards as options expiries hit the US, UK and German markets.
    Earlier, on Thursday, the Dow Jones Industrial Average climbed 0.4% to 10,779.2, its highest close since Oct. 1, 2008.
    On the JSE, Anglo American (AGL) was 92 cents lower at 305 rand and BHP Billiton (BIL) declined 202 cents to 245.51 rand. Sasol (SOL) gave up 40 cents to 284.90 rand.
    Platinum miner Angloplat (AMS) was down 9.93 rand or 1.33% to 735.06 rand. Lonmin (LON) lost 1.73 rand to 222.02 rand.
    Highveld (HVL) wavered 50 cents to 71.50 rand.
    Anglogold Ashanti (ANG) dropped 2.16 rand to 282.83 rand.
    Kumba Iron Ore (KIO) receded 5.38 rand or 1.53% to 346.61 rand.
    Diversified miner Exxaro (EXX) was 95 cents weaker at 125.05 rand, but African Rainbow (ARI) picked up 1.11 rand to 194.95 rand.
    Among industrials BAT (BTI) softened 2.27 rand to 248.93 rand, while Bidvest (BVT) dropped 2.50 rand, or 1.73% to 142 rand. Tiger Brands (TBS) moved 1.38 rand lower to 188.27 rand.
    Altron (ATN) shipped 1.15 rand or 4.04% to 27.35 rand.
    Pharmaceutical giant Aspen (APN) wavered 1.79 rand or 2.19% to 80.05 rand.
    Banker Standard Bank (SBK) declined 1.29 rand or 1.09% to 116.71 rand, and Santam (SNT) was 1.81 rand or 1.66% weaker at 106.94 rand.
    Retailer JD Group (JDG) softened 70 cents or 1.49% to 46.30 rand, Foschini (FOS) gave up 1.34 rand or 1.92% to 68.55 rand and Truworths (TRU) was 1.22 rand or 2.16% down to 55.34 rand.
    Construction group Murray and Roberts (MUR) decreased 79 cents or 2.02% to 38.36 rand, Aveng (AEG) shed 94 cents or 2.51% to 36.56 rand, but WBH Ovcon (WBO) added 1.07 rand to 116.19 rand.
    Astral (ARL) lost 2.42 rand or 2.14% to 110.50 rand.
    Sugar group Ilovo (ILV) gained 93 cents or 3.01% to 31.85 rand.
    Media group Naspers (NPN) gave up 7.50 rand or 2.32% to 315.50 rand.
    Assore (ASR) profited 24.95 rand or 3.33% to 774.95 rand.

     ______________________________________________________________________
At 12:00 local time (11:00 GMT)
                           TRADE           CLOSE        PERC        POINTS
ALL SHARE     (J203)   28664.300        28806.141      -0.49      -141.841
INDUSTRIALS   (J257)   27635.810        27780.350      -0.52      -144.540
FINANCIALS    (J580)   21120.830        21199.580      -0.37       -78.750
RESOURCES     (J210)   50318.760        50584.281      -0.52      -265.521
GOLD          (J150)    2228.890         2243.730      -0.66       -14.840
PLATINUM      (J153)      80.380           80.770      -0.48        -0.390
BANKS         (J835)   41330.940        41562.762      -0.56      -231.822
________________________________________________________________________

Value traded       2.978 billion rand
Volume             72.350 million shares
———————————————————————
Highest value traded shares:
Anglo American                 305.00 rand      dn        0.92 rand
Naspers N                      315.50 rand      dn        7.50 rand
Sasol                          284.90 rand      dn        0.40 rand
MTN Group                      124.16 rand      dn        0.34 rand
Woolworths                      23.72 rand      dn        0.18 rand
________________________________________________________________________

    By Gareth Vorster
    I-Net Bridge.
    Copyright 2010 I-Net Bridge. All rights reserved.

Stocks AM: JSE soft in futures closeout aftermath

lindsay — Fri, 19 Mar 2010 08:45:12 +0000

   Johannesburg, Mar 19 (I-Net Bridge) – The JSE took a dive straight into the red on Friday following a strong show on Thursday amid a high volume futures closeout.
    By 09:23 the JSE all share index had given up 0.46%, with resources 0.35% softer. Gold miners were relatively flat, down 0.21%, and platinum miners declined 0.52%.
    Banks were 0.66% worse off, financials dropped 0.45% and industrials moved 0.58% lower.
    The rand was bid at 7.29 to the dollar, unchanged from the JSE’s close on Thursday. Gold was quoted at US$1,124.05 a troy ounce from US$1,122.21 at the JSE’s last close. Platinum was at $1,627/oz from $1,629/oz at the JSE’s last close.
    A local trader said: “The JSE is weaker this morning but that is to be expected following a strong showing yesterday during a high volume futures closeout.
    “Global markets are pretty flat, and I think given yesterday’s results we are likely to see some position squaring ahead of the long weekend.”
     Dow Jones Newswires reported that European stocks are expected to open a little higher Friday, following the DJIA’s eight consecutive close in positive territory.
    Ben Potter at IG Markets calls London’s FTSE 100 up six points at 5,649, Frankfurt’s DAX up 20 at 6,032 and Paris’s CAC-40 up 16 at 3,954. He warns that options expiry could prompt some volatility. He also says the Greek debt issue has resurfaced again, adding pressure to European equities as well as the single currency. He thinks this issue and the lack of economic
data may contribute to some nervousness during the session.
    In Asia regional markets mostly higher with exporters supporting Tokyo market while property developers outperform in China. The Nikkei was trading 0.8% higher, while the Hang Seng was flat, up 0.05%.

   By Gareth Vorster
   I-Net Bridge.
   Copyright 2010 I-Net Bridge. All rights reserved.

Thursday’s Markets

lindsay — Thu, 18 Mar 2010 16:40:00 +0000

Click here to listen (6:20)

On futures close-out day the JSE hits new highs for the year thus far. Graeme Korner from BOE Private Clients describes the action with Lindsay Williams, with numbers brought to you by I-Net Bridge.

The Big Picture: World Cup 2010 (the countdown continues)

lindsay — Thu, 18 Mar 2010 16:38:09 +0000

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The excitement is now palpable; World Cup 2010 is less than 3 months away. Jeremy Gardiner, director of IAM chats to Lindsay Williams about the unique opportunity South Africa has by staging the biggest event, sporting or otherwise, in the world.

Wine

lindsay — Thu, 18 Mar 2010 16:31:52 +0000

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South Africa is up with France as an exporter to the UK, but the local industry is in trouble. Up to 50% of Cape farms might be in the red, and with the rand so strong and the 2010 harvest relatively poor, the near term future appears tricky. Can the World Cup save us? Don tooth, MD of Vergelegen chats to Lindsay Williams.

Reserves build up could ensure upgrade: Moody’s

lindsay — Thu, 18 Mar 2010 11:32:47 +0000

    Cape Town, Mar 18 (I-Net Bridge) - The build up of South Africa’s foreign exchange reserves is assuring resilience to market turbulence, ratings agency Moody’s senior vice president for sovereign credit in Europe and Africa, Kristin Lindow, said Thursday.
    According to Lindow, South Africa’s modest foreign debt exposure by both government and the country as a whole has reduced vulnerability to exchange rate volatility and the country is nearly impervious to sudden stops.
    Speaking at a conference on sub-Saharan credit risk in Cape Town, Lindow reckoned that the floating exchange rate also provides a cushion in the event of capital outflows.
    She suggested that there could be the possibility of an increase in the country’s rating from the present A3 with a stable outlook if there was a further build up in foreign liquidity - “especially if tested amidst the removal of capital controls,” she said.
    She also indicated that the removal of capital controls on residents is getting closer, although she insisted that officials from the National Treasury are obviously very, very close-mouthed about such a possibility.
   She said that another indicator for a ratings upgrade would be clear signs that the trade and current account deficits are sustainable, and that there would be clarity about economic policy continuity throughout the new administration.
   She also wanted to see evidence that the growth potential of the economy has accelerated beyond 5%, with non-vulnerable financing of the current account deficit.
   She said that currently the growth potential is between 3% and 4.5%.

     By Michael Hamlyn
    I-Net Bridge.
    Copyright 2010 I-Net Bridge. All rights reserved.

Greece threatens to call in IMF as Europe dithers

lindsay — Thu, 18 Mar 2010 10:57:02 +0000

Greece has upped the ante in an escalating game of brinkmanship, threatening to turn to the International Monetary Fund for support unless EU leaders come up with an acceptable rescue package at their next summit on March 25.

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