RDG BROKERS » investors

JSE up in thin volumes

RDG Brokers — Mon, 16 Aug 2010 23:26:58 +0000

JSE up in thin volumes

Aug 16 2010

Johannesburg – The JSE ended slightly firmer on Monday, with light total volumes and low total value traded underscoring nervousness among investors who remain on the sidelines due to heightened global economic uncertainty.

At its close the JSE all share index added 0.21%, with resources gaining 0.32% and gold miners climbing 0.64%. But platinum miners fell 1.10%. Banks rose 0.85% and industrials eked out 0.11% gain, and financials were 0.17% higher.

The rand was bid at 7.26 to the dollar from 7.31 at the JSE’s close on Friday. Gold was quoted at $1 224.80 a troy ounce from $1 212.28/oz at the JSE’s previous close, while platinum was at $1 532.00/oz from $1 520.50/oz before.

Mpho Mojalefa, a trader at BJM Client Services, said low value traded and light volumes indicated that investors were not prepared to commit themselves amid lack of direction.

Mojalefa said foreigners were buying US bonds, spreads were widening in Europe and gold price was higher, underlining uncertainty about the global economic recovery. “The US manufacturing data came below expectations,” he said.

Earlier, Japan reported downbeat economic data that raised concerns about the global economic recovery.

Dow Jones Newswires reported that US stocks fell early on Monday after weaker-than-expected reports on New York-area manufacturing and Japan’s gross domestic product fuelled concerns over slowing global growth.

The Dow Jones Industrial Average shed 55 points in early trading as investors flocked to safer havens.

The price of gold rose to its highest level in six weeks, while the yield on the benchmark 10-year Treasury note fell to its lowest level in more than a year.

- I-Net Bridge

Article from Fin24

Rand takes slight knock

RDG Brokers — Fri, 27 Nov 2009 08:32:41 +0000

South Africa’s rand weakened in a volatile session yesterday, breaking back above the 7.50/$ mark overnight. The euro dropped below 1.50 against the dollar as well as a report that Dubai’s debt is much bigger than anticipated was also cited as one of the reasons for our local units weakness. I believe the main reason for this volatility is we are going into silly season and with most major players out, and speculators are having some fun forcing currencies in a direction. Most moves from now till mid January will probably not make any sense! The yen hit its highest level in 14 years on the dollar on Friday and jumped against higher-yielding currencies as investors cut risk trades on concerns about debt problems in Dubai, while Japan signalled growing discomfort with the surge. After plummeting on Thursday, the dollar plunged to a new 14-year trough below 85 yen as investors unwound yen-funded carry trades in the likes of the Australian and New Zealand dollars. In a market made thinner by a U.S. holiday on Thursday, Japanese exporters fuelled the drop by buying yen ahead of the month-end, while traders also dumped dollars due to option triggers at 85.00 yen, and sell orders kicked in below that level.
Current levels
Rand / Usd	7.5500-7.6000
Rand / Euro	11.2800-11.3300
Rand / Sterling	12.4000-12.4500
Jpy / Rand	11.32-11.37
Jpy / Usd	86.18
Usd / Euro	1.4908
Gbp / Usd	1.6390
Gold	$1 170.00
Expected ranges
Rand / Usd	7.4500-7.6500
Rand / Euro	11.2000-11.4000
Rand / Sterling	12.3000-12.5000
Jpy / Rand	11.25-11.45

Courtesy of Accredinet

Positive Outlook

RDG Brokers — Fri, 06 Nov 2009 07:26:29 +0000

South Africa’s rand held onto gains and is slightly stronger this morning. Most emerging market currencies are benefiting from a positive global economic outlook. Trading should be quiet ahead of the release of U.S. jobs data this afternoon. While the euro, gold and other commodities remain well supported the rand will remain strong. The U.S. dollar held steady on Friday with investors consolidating positions ahead of October non-farm payrolls data due later in the session, a report that would highlight the durability of an economic recovery. A Reuters poll showed median forecasts are for 175,000 jobs being shed, slower than the 263,000 lost in September, with the jobless rate rising to 9.9 percent. If the numbers disappoint, investors are likely to flock to the U.S dollar and the yen JPY=, while a strong report could see high-yielding currencies gain.
Current levels
Rand / Usd	7.5900-7.6400
Rand / Euro	11.2800-11.3300
Rand / Sterling	12.6000-12.6500
Jpy / Rand	11.90 -11.95
Jpy / Usd	90.645
Usd / Euro	1.4875
Gbp / Usd	1.6620
Gold	$1 091.00
Brent	$78.63
Expected ranges
Rand / Usd	7.53000-7.7300
Rand / Euro	11.2000-11.4000
Rand / Sterling	12.5000-12.7000
Jpy / Rand	11.85-12.05

Investors cash In

RDG Brokers — Wed, 21 Oct 2009 16:24:55 +0000

We saw profit taking across the board as traders bought back short dollar positions on local and international currency markets. The rand gave back some of its gains versus the European currencies as well. Traders will close long rand positions ahead of the MPC rate announcement even though the general consensus is for rates to remain unchanged. Looking forward we have the mini budget coming up which could have an impact on the currency markets. The dollar stabilised on Wednesday, aided by profit-booking in rallying commodity-linked and higher-yielding currencies, after being pushed to a 14-month low against a basket of currencies the previous day. Traders said investors had been cashing in gains in the Canadian and New Zealand dollars, which hit their strongest levels in about 15 months this month, and in sterling, pushing them down about 0.2 percent against the greenback. The move helped the dollar climb further off a 14-month low against the euro after the single European currency failed to breach a psychological barrier at $1.50 the previous day. The dollar also got some support from profit-taking in Asian currencies, after markets in Brazil fell on a new government tax on foreign investments aimed at stopping the real from gaining. The Bank of Canada killed talk of an early rate hike on Tuesday, warning that favourable economic developments were being undermined by the Canadian dollar’s strength and sending the currency down sharply.
Current levels
Rand / Usd	7.3800-7.4300
Rand / Euro	11.0000-11.0500
Rand / Sterling	12.1000-12.1500
Jpy / Rand	12.20 -12.25
Jpy / Usd	90.68
Usd / Euro	1.4940
Gbp / Usd	1.6415
Gold	$1 056.00
Brent	$76.95
Expected ranges
Rand / Usd	7.3000-7.5000
Rand / Euro	10.9500-11.1500
Rand / Sterling	12.0000-12.2000
Jpy / Rand	12.15-12.35

One Year High

RDG Brokers — Wed, 09 Sep 2009 07:51:29 +0000

We continued in a 7.50/$ to 7.60/$ trading range yesterday. We have seen big demand for currency below the 7.50/$ mark and dealers are hesitant to take on large positions before getting more information on MTN/Bharti transaction. We will probably see more consolidation and trade in a 7.50/$ to 7.70/$ band until fresh factors emerges.

Asian stocks drifted lower after hitting a one-year high earlier on Wednesday and the dollar was stuck near a one-year low as investors, hopeful of an economic recovery, held back from moving more money into risky assets. European shares were set to stumble at the start, with futures on the Euro Stoxx 50 slipping 0.3 percent in early trade. The dollar, a haven for investors in difficult times, has been battered this week as market participants have favoured high-yielding investments and emerging markets. Gold’s surge above $1,000 has powered gains in other commodities and raised worries that money is being shifted out of the dollar. The Australian dollar slipped after retail sales surprisingly dropped in July and housing lending cooled. That raised questions about how soon the central bank would start raising interest rates.

Current levels

Rand / Usd
7.5300-7.5800

Rand / Euro
10.9200-10.9700

Rand / Sterling
12.4300-12.4800

Jpy / Rand
12.22-12.27

Jpy / Usd
92.45

Usd / Euro
1.4486

Gbp / Usd
1.6500

Gold
$1 001.00

Brent
$69.63

Expected ranges

Rand / Usd
7.5000-7.7000

Rand / Euro
10.8500-11.0500

Rand / Sterling
12.4000-12.6000

Jpy / Rand
12.10-12.30

Positive corporate Results

RDG Brokers — Wed, 26 Aug 2009 09:59:53 +0000

South Africa’s rand traded in narrow ranges yesterday, as market players were sidelined waiting for fresh economic indicators. We have CPI data at 11h30 this morning which is expected to be at 6.6 percent. On the global side will analysts watch this afternoon the release of U.S. housing figures. We should continue to see consolidation, keeping an eye on the MTN/Bharti deal……

Japanese stocks rose to a 10-month high on Wednesday, driven by a modest shift into defensive sectors, while stocks in Shanghai turned positive on the week as investors cheered corporate results. Thin summer trading volumes, however, kept prices choppy and markets generally remained in ranges. Major European stock futures were down 0.2 percent STXEc1 after the cash market closed at the highest since early October, while U.S. stocks futures were up 0.4 percent SPc1, set to extend gains after U.S. single-family home prices grew for a second straight month. The Ifo survey of German business sentiment is expected to show an across the board pickup later on Wednesday, playing into the story that recoveries are taking hold around the world.

Current levels

Rand / Usd
7.7700-7.8100

Rand / Euro
11.1200-11.1700

Rand / Sterling
12.6000-12.6500

Jpy / Rand
12.07-12.12

Jpy / Usd
94.12

Usd / Euro
1.4315

Gbp / Usd
1.6327

Gold
$948.00

Brent
$71.95

Expected ranges

Rand / Usd
7.6500-7.8500

Rand / Euro
11.0000-11.2000

Rand / Sterling
12.5500-12.7500

Jpy / Rand
12.05-12.25

Interest Rate Cut??

RDG Brokers — Thu, 13 Aug 2009 10:09:23 +0000

South Africa’s rand rallied overnight and is currently trading close to 8.00/$. The euro and pound rallied overnight which supported the local unit. A rally in the Dow Jones also contributed to the rand’s strength. We have the MPC announcement later today on local interest rates some people are calling for a 50 basis point cut, however while the Global recession appears to be recovering, rates should remain unchanged.

The dollar edged lower on Thursday after the Federal Reserve painted a less gloomy outlook for the U.S. economy, an assessment that led investors to return to commodity-linked currencies. The Fed said it would slow the pace at which it buys Treasuries by extending the duration, but not the size, of its $300 billion programme to buy long-term government securities. The U.S. central bank also kept interest rates near zero and said they would likely stay there for an extended period, which dealers said scaled back some market speculation that the Fed might raise rates soon.

Current levels

Rand / Usd
8.0000-8.0500

Rand / Euro
11.4000-11.4500

Rand / Sterling
13.2000-13.2500

Jpy / Rand
11.98-12.03

Jpy / Usd
96.23

Usd / Euro
1.4256

Gbp / Usd
1.66565

Gold
$952.00

Brent
$73.77

Expected ranges

Rand / Usd
7.9500-8.1500

Rand / Euro
11.3500-11.5500

Rand / Sterling
13.1000-13.4000

Jpy / Rand
11.90-12.10

Dollar Strengthens

RDG Brokers — Fri, 07 Aug 2009 09:32:09 +0000

South Africa’s rand broke above 8.00/$ yesterday, triggering stop loss orders causing the local unit to weaken close to 8.10/$. The euro which is seen as our major trading currency weakened against the dollar giving traders a reason to sell rand. The market has been good to both importers and exporters who has been patient, trading the 7.70/$ to 8.30/$ range. While market players got excited about the MTN/Bharti transaction generating between 2 to 4 billion dollars inflow, how about 2 million tourists coming to the soccer world cup next year spending each only R 30 000, the sum is quite a large inflow?

The dollar edged lower against a basket of currencies in a subdued market on Friday with investors largely staying on the sidelines ahead of key jobs data in the United States. The Australian dollar rose briefly after the Reserve Bank of Australia, which raised its growth forecast in a quarterly monetary policy statement, said interest rates could be expected to rise to more normal levels over time should the economy continue to improve.

Current levels
Rand / Usd
8.0500-8.1000
Rand / Euro
11.5500-11.6000
Rand / Sterling
13.5000-13.5500
Jpy / Rand
11.55-11.60
Jpy / Usd
95.40
Usd / Euro
1.4355
Gbp / Usd
1.6769
Gold
$961.00
Brent
$74.80
Expected ranges
Rand / Usd
7.9000-8.1000
Rand / Euro
11.4500-11.6500
Rand / Sterling
13.4000-13.6000
Jpy / Rand
11.50-11.70

Watch that Oil Price

RDG Brokers — Thu, 06 Aug 2009 13:31:36 +0000

South Africa’s rand remained under pressure yesterday testing 8.00/$, however local exporter interest prevented it from breaking above the resistance level. We are still trading in the upper 7.90/$ mark and euro strength are ignored by traders and fund managers. We are currently seeing investors withdrawing funds from emerging markets and back into low risk economies after the latest economic indicators were positive for the “old” economies. Trading is relatively quiet however a break above 8.00/$ could see stop loss orders being triggered.

The dollar was steady near this year’s lows against the euro on Thursday with investors bracing for policy decisions by the Bank of England and the European Central Bank later in the day. The dollar fell versus the euro on Wednesday to its lowest point since December after data showing U.S. private employers cut more jobs last month but at the slowest pace since October, offering a glimmer of hope the labour market is stabilising. Sterling held firm near a over nine-month peak against the dollar struck the previous day ahead of the BoE’s expected decision and announcement on interest rates and its quantitative easing programme later on Thursday. Economists are split on whether the BoE will inject more money into the economy by extending its asset purchases at the end of two-day policy meeting at 1100 GMT, although recently brighter British data is seen reducing such chances.

Current levels
Rand / Usd
7.9400-7.9900
Rand / Euro
11.4500-11.5000
Rand / Sterling
13.5000-13.5500
Jpy / Rand
11.91-11.96
Jpy / Usd

95.17

Usd / Euro
1.4405

Gbp / Usd
1.6990

Gold
$963.00
Brent
$75.25
Expected ranges
Rand / Usd
7.8500-8.0500

Rand / Euro

11.3500-11.5500
Rand / Sterling
13.4000-13.7000
Jpy / Rand
11.80-12.00

Strikes effect Investors

RDG Brokers — Wed, 29 Jul 2009 08:04:57 +0000

South Africa’s rand dropped yesterday and came under more pressure in the overnight market after investors lost their appetite for riskier assets. The local unit is currently trading above the 7.90/$ mark, we should see exporter interest close to 8.00/$ however if the negative sentiment continue a test of 8.00/$ will be seen. While scenes of destruction are shown worldwide due to the strike we should not expect the local unit to rally any time soon.

The dollar drifted sideways against a basket of currencies on Wednesday, hovering not far from the lowest level of the year, as investors awaited fresh leads from coming economic events in the United States. The euro held firm against the dollar but stayed shy of Tuesday’s eight-week high after news of weaker-than-expected consumer confidence in the United Stated prompted investors to cut long positions in the European currency. Major currencies were largely confined in ranges in Asian trade as investors remained cautious about a recent rapid rise in assets such as stocks and commodity prices.

Current levels

Rand / Usd
7.9000-7.9500
Rand / Euro
11.2000-11.2500
Rand / Sterling
12.9800-13.0300
Jpy / Rand
11.83-11.88
Jpy / Usd
94.15
Usd / Euro
1.4126
Gbp / Usd
1.6360
Gold
$935.00
Brent
$69.36
Expected ranges

Rand / Usd
7.8500-8.0500
Rand / Euro
11.1500-11.3500
Rand / Sterling
12.9000-13.1000
Jpy / Rand
11.75-11.95

RDG BROKERS » investors

JSE up in thin volumes

JSE up in thin volumes

Rand takes slight knock

Courtesy of Accredinet

Positive Outlook

Investors cash In

One Year High

Positive corporate Results

Interest Rate Cut??

Dollar Strengthens

Watch that Oil Price

Strikes effect Investors

Courtesy of Accredinet Financial Solutions