Domestic markets
The JSE all-share was firmer in midday trade yesterday, in line with international equity markets amid improved global risk appetite as concerns over Greece receded. The local bourse continued this strong momentum amid higher crude oil prices and improved global market sentiment, and ended 0,76 per cent higher. The resources, platinum and industrials indices rose by 0,90 per cent, 0,69 per cent and 0,68 per cent respectively. The banks index increased by 0,94 per cent and the financials index was 0,62 per cent higher. Conversely, the gold index declined by 0,99 per cent.
The South African rand remained on the front foot yesterday, targeting R7,29 per US dollar. The local currency also reached key technical levels against the euro amid keen buying interest both locally and internationally. The local currency is currently trading at R7,41 per US dollar, at R10,14 per euro, and at R11,17 per pound sterling.
Daily Financial Markets Report
Tuesday, 09 March 2010
|
|
5 workday % change
|
Tues
02/03
|
Wed
03/03
|
Thurs
04/03
|
Fri
05/03
|
Mon
08/03
|
Tues
09/03
|
Daily % change
|
|
JSE ALSI
|
4.0
|
27026
|
27372
|
27683
|
27774
|
27904
|
28117
|
0.76
|
|
JSE Top 40
|
3.0
|
24525
|
24587
|
24857
|
24916
|
25058
|
25256
|
0.78
|
|
R/US$
|
3.4
|
7.63
|
7.57
|
7.50
|
7.48
|
7.44
|
7.38
|
-0.81
|
|
R/€
|
2.3
|
10.31
|
10.38
|
10.29
|
10.15
|
10.10
|
10.08
|
-0.20
|
|
R/£
|
2.7
|
11.40
|
11.36
|
11.31
|
11.22
|
11.15
|
11.10
|
-0.45
|
|
Gold (US$/oz)
|
0.6
|
1117
|
1134
|
1141
|
1129
|
1138
|
1124
|
-1.25
|
|
Platinum (US$/oz)
|
2.9
|
1545
|
1572
|
1575
|
1571
|
1578
|
1590
|
0.75
|
|
Brent Crude Oil (US$/barrel)
|
3.6
|
77.07
|
77.38
|
78.61
|
78.13
|
79.67
|
79.81
|
0.18
|
|
Barrels/1 oz gold
|
-2.8
|
14.49
|
14.65
|
14.51
|
14.45
|
14.28
|
14.08
|
-1.42
|
|
R157 bond (%)
|
-0.03
|
8.23
|
8.14
|
8.18
|
8.16
|
8.16
|
8.20
|
0.49
|
International markets
US equity markets were relatively flat yesterday as hopes fuelled by AIG's sale of a unit and McDonald's upbeat sales were offset by falling healthcare shares after President Barack Obama's criticism. The US President criticised insurance premium increases and some cases of coverage denial in the healthcare industry. European equity markets fell yesterday after six days of gains, with pharmaceutical shares taking a fall after AstraZeneca’s cancer drug failed in trials, thus offsetting gains in oil majors which drew support from stronger crude oil prices. Asian equity markets closed higher as encouraging US employment and consumer data reinforced views that the US economy is steadily recovering, thus boosting risk appetite.
The euro recouped losses incurred earlier in the day and was boosted by comments on Sunday from French President, Nicolas Sarkozy, which hinted on plans to support debt-stricken Greece, thus easing concerns about Greece’s indebtedness.
Despite a stronger rand, South African bonds were weaker yesterday due to supply pressures. Traders noted that there were quite a few bonds coming to the market this week, including the City of Cape Town, African Bank, Investec and Eskom, and the market is concentrating its attention on supply issues.
Commodities
The gold price fell by more than 1 per cent yesterday due to technical selling and liquidation by investors of positions added last week to cushion currency volatility from the Greek debt crisis. Spot gold is currently trading at US$1 121/oz.
Oil prices rose due to a weaker US dollar and amid signs that the global economy is improving, thus raising hopes of a recovery in energy demand. Brent crude oil is currently trading at US$80,05/barrel.