Mortgage advances by the monetary sector increased by 29,8% year-on-year in June 2006, which is down from the 30% level it has hovered at since March to May, and potentially indicates the early stages of a downward trend in demand for housing, according to analysts.
While listed property recorded a whopping 38% growth last year, it has fallen by 22,8% since reaching a peak on May 5 this year, prompting investors to reconsider this investment avenue. However, Mariette Warner, head of property funds at Stanlib, South Africa’s largest unit trust company, said further big knocks in the coming weeks are unlikely.
The Indian High Commissioner to South Africa, Satyabrata Pal, said on Thursday that a wake-up call was needed on economic relations between South Africa and India. Pal listed numerous areas of substantial growth in India where South African companies could come to the party, but were not doing so.
Advantage Asset Managers’ chief investment strategist Wayne McCurrie said in Pretoria on Tuesday afternoon that fair value for the rand was R7 to R8 to the dollar over two to three years, but that 50% of this had suddenly happened in the last month and a half.
There is a good chance that the Reserve Bank may increase interest rates further this year, an economist said on Friday. ”The bottom line is that interest rates will have to rise,” ABSA chief economist Christo Luus said. Luus was confident that borrowers will have to face hikes of only about 2% this cycle.
South Africa’s inflation outlook has become "complicated" as South Africa is dependant on imported oil and this will place pressure for further rate hikes, say Moody’s researchers Dr Ruth Stroppiana and Paul Guest. According to Absa’s chief economist, the country could be in for another 200 basis-point rate rise.
Murray & Roberts group chief executive Brian Bruce said on Monday that the company has reorganised leadership responsibilities in the run-up to the Soccer World Cup 2010, adding that critical areas of the Gautrain project should be ready in time for the tournament.
World Bank President Paul Wolfowitz urged the G8 +5 leaders, which includes South Africa, over the weekend to reach an agreement in the faltering Doha round trade talks when they meet in St Petersburg on July 17. The Doha round has been reeling against the ropes after talks in Geneva in the first week of July ended without a deal.
South Africa’s Minister of Labour Membathisi Mdladlana said on Thursday at the 19th Annual Labour Law Conference in Sandton that the recent importing of skills by Sasol indicated that it was not just job creation that was a fundamental problem in South Africa, but also a shortage of skills.
South Africa’s production price index (PPI) for May 2006 was slightly better than forecast, but the historic nature of these statistics are not likely to fool the market. PPI for May was recorded higher at 5,9% from 5,5% before and 0,4% up from 0,1% on a monthly basis.