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/ 11 November 2008
Shares in SA banks fell on Tuesday after Fitch downgraded its outlook on Absa, Investec and Nedbank, citing deteriorating conditions in the economy.
Should analysts and economists publicly raise concerns about issues that affect millions of South Africans, only to be condemned for doing so?
Allegations that Investec conducted insider trading or misled the public over inflation have been dismissed for now, the FSB says.
No insider trading took place at Investec, Solidarity said on Thursday.
A two-year delay by Statistics South Africa to implement rebasing and reweighting of the consumer price index basket has resulted in inflated data.
South Africa’s targeted CPIX (consumer inflation less mortgage costs) rate quickened unexpectedly to a near five-and-a-half year high of 10,4% year-on-year in April from 10,1% in March, official data showed on Wednesday. Mike Schussler, economist at T-Sec, said: ”That seals the case for interest-rate hikes. Inflation continues to shock.”
South Africa’s economic growth rate slowed to 2,1% in the first quarter of 2008 on a seasonally adjusted and annualised basis, official data showed on Tuesday, citing a sharp drop in mining due to a power crisis. Statistics South Africa said Q1 GDP slowed from 5,3% in the fourth quarter of 2007.
South African investment banking and asset management group Investec reported a 15% rise in full-year core profit on Thursday, but missed expectations because of United States writedowns. Pre-tax operating profit rose to £537,7-million for the year to March 31, meaning growth was 3% lower than expected according to a Reuters poll.
South African stocks were mixed in a thin-volume session by noon on Friday, with MTN in focus on vague newspaper reports that an Indian firm might launch a takeover bid for the local mobile telecoms firm, traders said. By midday the JSE’s broader all-share index was down 0,14%. Resources fell 1,27%.
South Africa’s producer price inflation (PPI) accelerated above forecasts to 11,2% year-on-year in February from 10,4% in January, official data showed on Thursday.
Statistics South Africa said the headline number, representing domestic output, stood at 1,3% on a monthly basis, compared with 1% previously. Economists polled last week forecast that annual PPI would come in at 10,7%, while the monthly rate of increase was seen at 0,8%.
The increase in South Africa’s consumer price index excluding mortgage rate changes (CPIX) for metro and other areas, which is used by the South African Reserve Bank for its inflation target, was 9,4% year-on-year in February from 8,8% in January. The key drivers were higher food and petrol prices.
If political uncertainty, power cuts and the economic slowdown is making you stay out of the market; think again. You can still make money out of South African equities when the going gets tough. Last year, Investec launched RandHedge as part of its exchange-traded fund "Z-shares" range.
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/ 28 February 2008
South Africa’s consumer inflation, which jumped unexpectedly in January, raised the risk of further monetary tightening despite worries over slowing economic growth. Statistics South Africa said on Wednesday that targeted CPIX (consumer inflation less mortgage costs) stood at 8,8% year-on-year in January compared with 8,6% in December.
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/ 15 November 2007
South African investing banking and asset-management group Investec said on Thursday that pretax operating profit increased 23,8% to £254,3-million (R3,6-billion) in the six months to September 30. ”Whilst current conditions within the UK credit markets remain, activity levels are likely to be impacted,” said chief executive Stephen Koseff.
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/ 15 November 2007
The JSE continued to follow the downward trend in international markets at midday on Thursday, remaining firmly in the red. By 11.58am, the JSE’s all-share index lost 0,7%. The gold mining index gave up 0,8% and resources fell 0,7%, but the platinum mining index added 0,57%.
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/ 27 September 2007
South Africa’s producer price inflation (PPI) slowed to 9,4% year-on-year in August, below forecasts, after a 10,3% increase in July, official data showed on Thursday. On a monthly basis, PPI increased by 0,7% after a 1,6% rise in July. Economists had forecast that annual PPI come in at 9,7%, while the monthly rate of increase was seen at 1%.