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/ 20 June 2005

Old Mutual sees embedded value increase

London-listed South African life assurance group Old Mutual said on Monday that the adoption of European Embedded Value (EEV) increased its embedded value by 0,5% at the end of December 2004. The EEV principles require best-estimate assumptions, consistency between assumptions and active review.

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/ 8 June 2005

MPC meeting: No change in rates expected

All economists surveyed by I-Net Bridge expect no change in interest rates at the end of the two-day meeting of the South African Reserve Bank’s Monetary Policy Committee meeting, which started at 9am on Wednesday. This will be the ninth consecutive meeting at which the majority of economists have forecast no cut in rates.

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/ 30 May 2005

Botswana devalues currency

The Botswana Minister of Finance and Development Planning, Baledzi Gaolathe, on Sunday announced a 12% devaluation of the pula against a basket of currencies, as well as a change in the system of exchange-rate adjustments to a crawling peg rather than the discrete steps previously used, in order to improve Botswana’s competitiveness.

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/ 27 May 2005

Weak rand spurs foreign buying of SA assets

The 4,2% move in the rand from a best level of 6,3650 per US dollar on May 20 to a worst level of 6,6350 on May 26 has spurred net foreign purchases of South African assets. In the past four trading days, foreigners bought a R1,897-billion worth of South African bonds and a net R355-million worth of South African equities.

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/ 26 May 2005

Positive outlook for employment market

The <i>Sunday Times</i> job-advertising space has risen by 25,3% year-on-year in the first four months this year, compared with an 8,7% increase in the first four months of 2004. This points to a strong employment market in 2005, as changes in job-recruitment space tend to lead changes in employment.

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/ 25 May 2005

SA housing market ‘cooling off’

The South African housing market is most probably in the process of cooling off after a strong boom phase over the past few years, according to commercial bank Absa. "House-price growth is currently on a downward trend," Absa senior economist Jacques du Toit wrote in the latest <i>Property Trends</i> newsletter.

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/ 18 May 2005

Mzansi accounts break the million mark

The low-income national banking account Mzansi exceeded one million accounts by May 15, Colin Donian, the Banking Council director responsible for the Mzansi initiative, said on Wednesday. Launched less than seven months ago, the Mzansi account provides account-holders with entry-level banking services.

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/ 16 May 2005

Motor claims dominate insurance complaints

Motor claims continue to dominate complaints about service from short-term insurers, according to the 2004 annual report of the ombudsman for short-term insurance, released on Monday. Motor claims accounted for 64% of complaints, followed by complaints relating to household contents and house structures.

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/ 28 April 2005

Liquidations in March rise by 32,6%

The total number of liquidations increased by 32,6% year-on-year (y/y) to 301 after easing by 0,7% y/y in February 2005 to 296 following a 15,5% y/y decline in January 2005 to 328, Statistics South Africa said on Thursday. The record monthly total of 511 was reached in August 2000.

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/ 22 April 2005

Economists preview March PPI

South Africa’s March 2005 producer price index (PPI) is expected to rise to a 1,7% year-on-year (y/y) increase, from only 1,2% y/y in February. Statistics South Africa (Stats SA) will release the March producer price data at 11.30am on Thursday April 28. According to a survey of economists, the range is from 1,4% y/y to 2,5% y/y.

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/ 5 April 2005

Finance Minister ‘should’ cut fuel levy

South Africa’s Finance Minister Trevor Manuel should cut the fuel levy, which is not a specific targeted tax used for road maintenance, but is a general revenue raising levy, by 50 cents per litre (c/l) on 6 April. In the February 2005 Budget, Manuel raised the fuel levy by 5c/l to 116c/l for petrol and 100c/l for diesel.

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/ 4 April 2005

Bonds stay soft in dull trade

South African bonds stayed a touch softer in dull midday trade on Monday with the market looking for direction. At noon, the key South African six-year R153 bond was yielding 8,260% – 7 basis points softer than its previous close of 8,190%. The five-year R194 bond was untraded from its previous close of 7,870%.

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/ 14 March 2005

February cement sales up 12,1%

South African cement sales rose by 12,1% year-on-year (y/y) to 862&nbsp;252 tonnes in February, ending two months of slowing y/y increases. In November 2004, South African cement sales surged by 26,1% y/y to a record 1&nbsp;103&nbsp;317 tonnes, but this slowed to a 7,8% y/y increase to 724&nbsp;051 tonnes in December 2004.

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/ 11 March 2005

Nasdaq still 60% below March 2000 peak

Five years after the Nasdaq index peaked at 5132,52 on 10 March 2000, the Nasdaq is still 60% below this "irrational exuberance" peak as it closed at 2059,72 on 10 March 2005. All the prayers, hopes, media hype and entreaties of the average United States investor and many politicians seem to have had absolutely no effect on the relentless slide of the Nasdaq.

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/ 10 March 2005

Fujitsu SA sells 30% BEE stake

Fujitsu South Africa, part of Japanese-based Fujitsu, the world’s third-largest IT company with annual revenues of R300-billion and more than 156 000 employees, on Wednesday sold a 30% stake to Yard Capital, a black economic empowerment (BEE) investment company headed by Leslie Maasdorp and Irene Charnley.

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/ 2 March 2005

SA retail sales up 12,3% in December

South Africa’s real retail sales rose to a 12,3% year-on-year (y/y) increase in December after increasing by a revised 11,1% y/y in November following October’s record revised 12,9% y/y in October, Statistics South Africa said on Wednesday. This brought real retail sales growth for 2004 to 10,3% compared with 4,9% in 2003 and 2,3% in 2002.

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/ 23 February 2005

Public sector expenditure to grow by 18,8%

<img src="http://www.mg.co.za/ContentImages/197779/special_rep_icon_template.gif" align=left>South Africa’s public sector capital expenditure is expected to grow at an average of 18,8% per annum over the year-year period covered by the 2005 Medium Term Expenditure Framework from an average of 11,7% a year between 2001/02 and 2004/05, the Treasury said in its Budget Review on Wednesday.

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/ 23 February 2005

Treasury: Strong rand has hurt inbound tourism

The strong rand hurt foreign inbound tourism into South Africa in 2004, the South African Treasury said in its Budget Review on Wednesday. "Rand strength probably contributed to the fall in South Africa’s attractiveness as an international tourist destination from a ranking of 28th in terms of tourist arrivals in 2002 to 30th today," the Treasury said.

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/ 23 February 2005

SA logistics chain needs to be addressed

<img src="http://www.mg.co.za/ContentImages/197779/special_rep_icon_template.gif" align=left>The South African Treasury said in its Budget Review on Wednesday that there was a need to address the national logistics chain so as to reduce the cost of doing business in South Africa, improve customer service, improve the quality of the asset base and meet social and developmental objectives.

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/ 23 February 2005

Budget rings in ‘season of hope’

<img src="http://www.mg.co.za/ContentImages/197779/special_rep_icon_template.gif" align=left>Hailing the Grammy Award for Ladysmith Black Mambazo and the Golden Bear award for <i>uCarmen eKhayelisha</i>, Minister of Finance Trevor Manuel said on Wednesday in his 2005/06 Budget Speech that it is entirely fitting that the new season of hope and rising confidence of the nation should be proclaimed in music and in theatre.

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/ 22 February 2005

What will Manuel do with his R14bn?

<img src="http://www.mg.co.za/ContentImages/197779/special_rep_icon_template.gif" align=left>Higher-than-expected government revenue growth means Minister of Finance Trevor Manuel has R14-billion to allocate when he announces the 2005/06 Budget on Wednesday, Old Mutual Asset Managers (Omam) economist Rian le Roux told a media briefing on Tuesday.

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/ 21 February 2005

Strong revenue provides room for tax cut

<img src="http://www.mg.co.za/ContentImages/197779/special_rep_icon_template.gif" align=left>Strong government revenue growth should allow Minister of Finance Trevor Manuel to cut taxes when he announces the 2005/06 Budget on Wednesday, but economists are divided as to whether the beneficiaries will be individual tax payers or companies.

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/ 15 February 2005

Fourth-quarter GDP rose by 4%

South Africa’s real gross domestic product (GDP) at market prices on a quarter-on-quarter seasonally annualised and adjusted basis rose by 4% in the fourth quarter 2004 from a revised eight-year high of 5,7% in the third quarter 2004, Statistics South Africa said on Tuesday.

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/ 2 February 2005

Liquidations decline 14,1% in 2004

The total number of liquidations recorded for 2004 was 3 510, a 14,1% decline on the 2003 total of 4 086, Statistics South Africa said on Wednesday. The 14,1% decline was due to a decrease of 34,2% (from 857 to 564) in compulsory liquidations and a drop of 8,8% (from 3 229 to 2 946) in voluntary liquidations.

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/ 31 January 2005

Strong rand fails to dent export growth

South African exports rose by 7% in rand terms and 25,7% in dollar terms in 2004, as the strong rand failed to dent export growth due to strong demand from China and high commodity prices. Exporters are reporting buoyant demand, which is sadly constrained by bottlenecks on the railways and harbours, not by the strong rand.