Monetary policy had contributed to the containment of CPIX inflation to within the target range against the background of various risks to the inflation outlook, said South African Reserve Bank Governor Tito Mboweni on Wednesday during his address at the 86th ordinary general meeting of shareholders.
Fitch Ratings’ director of the sovereigns department, Veronica Kalema, says South Africa’s net exports will get a boost from the weaker rand, which will have a rebalancing effect on the economy. Fitch also said South Africa’s gross domestic product should not fall as low the 3,7% reached in 2004.
The JSE lost 118 points by midday with resources leading the pack downhill, although some support was seen coming for bank and retail counters. By 12.07pm, the all-share index was down 0,55%, with banks the only shining light, up marginally by 0,07%. Financials were down 0,20% while resources lost 0,92%.
The JSE pared its early gains to just a six point increase by midday on Wednesday as traders awaited key United States inflation data and as the market absorbed a weaker FTSE market. Gold shares, however, continued to lead the pack. By 11.52am, the all-share index was up a mere 0,03% after being up 0,40% in early trade.
South Africa’s Minister of Transport Jeff Radebe announced on Thursday that the new international airport at La Mercy, 30km north of Durban, will be operational, and the Durban International airport decommissioned, in the first quarter of 2010 in time for the Soccer World Cup.
The Congress of South African Trade Unions-affiliated Southern African Clothing and Textile Workers’ Union (Sactwu) says it is optimistic that the one outstanding wage negotiation should be settled in the next two weeks. "We are optimistic that the one outstanding negotiation should be resolved in the next two weeks," said Sactwu’s national organising secretary Wayne van der Rheede.
Global resources giant Anglo American has reported record underlying earnings of $2,5-billion in the half year to 30 June 2006, an increase of 47% over the previous period. The company said the high earnings were achieved against a backdrop of a favourable trading environment with strong metal prices and improved volumes.
Speaking during Kumba Resources’ first-half results presentation on Wednesday, chief executive Dr Con Fauconnier said most mines were still running despite the current strike action and that the company was still managing to meet the demands of customers.
A spokesperson from the South African Reserve Bank has confirmed Wednesday’s Monetary Policy Committee meeting had started and everything is "running according to schedule". A survey of 13 economists by I-Net Bridge has found that the consensus forecast is for a 50 basis point rate-hike on Thursday.
Despite an increase in interest rates on June 8, money-supply numbers for June, published by the Reserve Bank on Monday, showed little impact of a slowdown in demand and raised the spectre of a definite rate rise on Thursday. "June’s year-on-year M3 growth, at 23,07%, remains high," said research house RLJP.