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/ 29 February 2008
Gold-mining stocks and other commodity counters helped keep the JSE’s head above the water by midday on Friday, as metal prices kept driving higher on the back of a weaker United States dollar. By 12.01pm, the JSE’s broader all-share index was up 0,24%, led by a 1,85% climb in the gold-mining index.
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/ 18 February 2008
The recent turmoil in financial markets has not been confined to equities. Bonds have been the worst-performing asset class for two years running, returning a dismal 4,2% in 2007. Does this mean the tide is ready to turn, that it can’t get any worse and that investors should pile back into bonds again after two really bad years?
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/ 12 February 2008
Chief economist at First National Bank Cees Bruggemans said on Tuesday that the apparent large-scale escalation in emigration intentions among talented professionals and managers is a major threat to the economy, especially when combined with the impact of the electricity crisis.
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/ 7 February 2008
The Young Communist League (YCL) on Thursday blamed the media for ”wittingly or unwittingly” misleading the public on comments made by South African Reserve Bank Governor Tito Mboweni. The league held a teleconference with Mboweni on Thursday during which his comments about certain African National Congress members and inflation-targeting were discussed.
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/ 31 January 2008
Press photographers were again barred from attending a press conference where South African Reserve Bank (SARB) Governor Tito Mboweni announced the latest repo-rate decision on Thursday. It is the second time that photographers have been barred from taking pictures of Mboweni at the SARB press conference.
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/ 31 January 2008
South Africa’s producer price inflation quickened to 10,3% year-on-year in December, above forecasts, after a 9,1% increase in November, official data showed on Thursday. On a monthly basis, PPI increased by 0,5% after a 0,3% rise in November.
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/ 31 January 2008
A weaker rand drove mining shares higher on the JSE by midday on Thursday, lifting the bourse 0,88% into the black. By noon, the platinum-mining index was 2,74% higher, while the gold-mining index advanced 2,36% and resources were up 2,04%. Industrials edged up 0,16%, but financials and banks were off 0,66% and 1,24% respectively.
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/ 25 January 2008
It is likely to be a tale of two halves for local and global financial markets and investors this year, with conditions tough during the first half of the year but markets beginning to factor in a better 2009 during the second half based on the positive impact that lower global interest rates will have.
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/ 21 January 2008
It is almost inconceivable that the South African Reserve Bank’s (SARB’s) Monetary Policy Committee would raise interest rates in the current atmosphere, according to strategist for Investec Securities, Brian Kantor. "I would not have raised the last two times. It is quite clear now that the last increase was over the top," he said,
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/ 17 January 2008
The South African Reserve Bank (SARB) is expected to hike interest rates by a further 50 basis points at the end of January, Absa’s economic research unit said on Wednesday. This was in spite of retail trade sales data released earlier by Statistics South Africa showing that consumer spending continued to buckle.
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/ 16 January 2008
Despite a significant dip in real retail sales in South Africa, analysts feel that risks remain for another rate hike on January 31. However, the central bank may also have to ponder that real retail sales could head into negative territory in the months ahead and lead consumers into a recession.
The JSE was firmer by midday on Tuesday as a weaker United States dollar helped precious metals boost mining stocks on the bourse. By noon, the broader all-share index was 0,57% better, led by a 1,74% climb in the gold-mining index. The platinum-mining index gained 1,4% and resources added 1,17%.
Levels of unemployment, poverty and inequality remained the biggest problems in 2007, the Congress of South African Trade Unions (Cosatu) said in its New Year message on Monday. ”The number, and quality, of new jobs being created are nowhere near enough to meet the Accelerated Shared Growth Initiative for South Africa,” said Cosatu.
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/ 19 December 2007
South African consumer inflation raced further away from the central bank’s band in November, backing the case for another interest rate rise, despite a slowdown in retail sales. The targeted CPIX gauge — which strips out mortgage costs — jumped to 7,9% year-on-year from 7,3% in October.
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/ 19 December 2007
South Africa’s targeted CPIX inflation rate quickened to 7,9% year-on-year in November from 7,3% in October, official data showed on Wednesday. Statistics South Africa also said that the all-items consumer price index increased by an annual rate of 8,4%, compared to 7,9% in October.
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/ 6 December 2007
South African markets were expecting slightly more hawkish rhetoric by the South African Reserve Bank than transpired on Thursday and now feel inflation is fairly close to its peak. The bond market, especially at the previously sold-off short end, has reacted favourably.
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/ 6 December 2007
South African Reserve Bank Governor Tito Mboweni on Thursday raised the repo rate by 50 basis points following a two-day meeting of the bank’s monetary policy committee. The increase pushes the repo rate to 11%, the prime overdraft rate to 14,5% and the tightening cycle that began in June last year to 400 basis points.
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/ 30 November 2007
South African Reserve Bank Governor Tito Mboweni said on Thursday evening that inflation-targeting would be here "for many years" and economic policy is not going to change in South Africa as the foundations built up by President Thabo Mbeki, himself and Finance Minister Trevor Manuel were too strong to be weakened.
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/ 29 November 2007
The continued strong rises in credit extension provided little counter to the shocking inflation figures released on Wednesday and the chances of an interest-rate hike next week now seemed an almost assured fact, the Efficient Group said on Thursday. This comes after the South African Reserve Bank released both the October monetary aggregates and credit extension figures.
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/ 27 November 2007
Equity markets in the emerging world have weathered the subprime credit crunch in developed markets more easily than any previous market turmoil, and are expected to remain a sought-after investment destination — if not a safe haven — for many years to come, according to the head of equity research at Old Mutual Investment Group South Africa.
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/ 16 November 2007
Finance ministers and central bank governors from the world’s largest economies gather in Kleinmond in the southern Cape this weekend for a meeting of the Group of 20 countries. The event is described by Finance Minister Trevor Manuel as probably the most significant gathering of economic policymakers seen to date in South Africa.
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/ 14 November 2007
South Africa’s retail sales growth slowed to 2% year-on-year in September at constant prices, data showed, but analysts said this was likely not enough to hold off another interest rate hike in December. Retail sales growth slowed from a downwardly revised 6,6% in August, Statistics South Africa said on Wednesday.
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/ 13 November 2007
If the South African Reserve Bank is consistent, then inflation matters have deteriorated since October and another rate hike can be expected in December, according to Dr Azar Jammine, director and chief economist of Econometrix. However, Jammine on Monday also criticised some of the thinking in this regard.
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/ 10 November 2007
Eskom is looking at the possibility of increasing electricity tariffs by 18%, South African Broadcasting Corporation (SABC) news reported on Friday. Eskom said the cost of building power stations — at R1,13-trillion over the next 20 years — and the rise in coal prices are to blame for the possible increase.
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/ 9 November 2007
High interest rates in South Africa may continue supporting the rand in the coming months as investors continue to be attracted by the growing yield differential between United States treasuries and their rand-denominated equivalents, says global analyst firm Moody’s Economy.com.
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/ 8 November 2007
Global economic power relations, the commodity cycle and food prices are some of the issues to be discussed at next week’s Group of 20 (G20) meeting in South Africa. Finance Minister Trevor Manuel said the meeting is ”probably the most significant gathering of economic policymakers we’ve ever had in South Africa”.
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/ 6 November 2007
The South African Reserve Bank said on Tuesday in its latest <i>Monetary Policy Review</i> that the breach of the 3%-to-6% inflation target is of "significant concern" to the monetary policy committee. The bank added that some of the key inflation risks have proved "persistent" since the previous review was published in May.
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/ 6 November 2007
The South African Reserve Bank (SARB) said on Tuesday in its latest <i>Monetary Policy Review</i> that in light of the risks around the subprime crisis in global markets, it is important to maintain a stable and transparent monetary policy regime. Authorities in some emerging markets have been advised to strengthen surveillance.
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/ 5 November 2007
Tighter monetary policy in South Africa and other emerging-market economies is ”very appropriate” given the upside risks to inflation, a senior International Monetary Fund (IMF) official said on Monday. Charles Collyns, deputy director for research at the IMF, said emerging markets face different problems to advanced economies.
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/ 25 October 2007
There is no compelling evidence that circumstances in Zimbabwe currently pose a threat to financial stability in South Africa, the South African Reserve Bank (SARB) said on Thursday. Releasing the <i>Financial Stability Review</i>, it said that currently the potential for negative news from Zimbabwe to affect investor sentiment towards South Africa is small.
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/ 25 October 2007
South African bank shares leapt on Thursday after reports that China’s biggest bank, Industrial and Commercial Bank of China, has agreed to buy a 20% stake in Standard Bank, in a deal reported to be worth ,5-billion. Trading in Standard Bank shares was halted ahead of the release of a statement by the bank on the outcome of negotiations.
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/ 24 October 2007
The increase in South Africa’s CPIX (consumer inflation less mortgage costs) for metro and other areas, which is used by the South African Reserve Bank for its inflation target, was up 6,7% year-on-year (y/y) in September from 6,3% y/y in August, Statistics South Africa (Stats SA) said on Wednesday.