Tips for beating the market tend to come and go quickly, but one has held up extremely well: if executives, directors or others with inside knowledge of a public company are buying or selling shares, investors should consider doing the same thing.
Indeed, much research shows that insider trading activity is a valuable barometer of broad shifts in market and sector sentiment. But, before chasing each insider move, outsiders need to consider the factors that dictate the timing of trades and the factors that conceal the motivations.
Read the full article at investopedia.com
Wednesday, February 28, 2007
Oil, maize price risks to S.Africa inflation - survey
South Africa's inflation prospects have improved this year, but higher international oil and maize prices could cloud the outlook, the Bureau of Economic Research (BER) said on Wednesday.
In its quarterly economic survey, the BER said inflation was unlikely to breach the upper end of the central bank's 3-6 percent target range and forecast an average CPIX increase of 5.4 percent this year, up from 4.6 percent in 2006.
International oil prices have pushed higher over the past few weeks to more than $60 a barrel after briefly dipping below $50 a barrel, raising the prospect of higher domestic fuel prices adding to inflationary pressures.
Maize prices have surged to four-year highs and are up by 30 percent since the beginning of the year, the BER said in a statement.
Read more at Reuters South Africa
In its quarterly economic survey, the BER said inflation was unlikely to breach the upper end of the central bank's 3-6 percent target range and forecast an average CPIX increase of 5.4 percent this year, up from 4.6 percent in 2006.
International oil prices have pushed higher over the past few weeks to more than $60 a barrel after briefly dipping below $50 a barrel, raising the prospect of higher domestic fuel prices adding to inflationary pressures.
Maize prices have surged to four-year highs and are up by 30 percent since the beginning of the year, the BER said in a statement.
Read more at Reuters South Africa
S.African stocks slide anew on tax, global jitters
South African stocks slid on Wednesday amid a global sell-off as worries about a possible windfall tax on miners hit resource stocks and Naspers tumbled on news it will sell new shares to raise cash.
The Johannesburg Top-40 index of blue-chip stocks dropped 1.11 percent to 23,176 points after tumbling more than 3 percent the previous day, halting a rally that took the index to a string of record highs.
The All-share index tripped 1.08 percent lower to 25,795.99 points.
Read more at Reuters South Africa
The Johannesburg Top-40 index of blue-chip stocks dropped 1.11 percent to 23,176 points after tumbling more than 3 percent the previous day, halting a rally that took the index to a string of record highs.
The All-share index tripped 1.08 percent lower to 25,795.99 points.
Read more at Reuters South Africa
S.Africa trade balance swings back into red
South Africa's monthly trade balance swung back sharply into deficit in January after a small surplus in December, keeping pressure on the ailing current account.
The massive 11.94 billion rand shortfall was just off the record gap of October last year, and was way above forecasts of a 3.3 billion rand deficit.
The South Africa Revenue Service (SARS) data -- which is notoriously volatile -- recorded an unexpected 0.39 billion rand surplus in December, raising hopes that the series of large deficits had ended.
Read more at Reuters South Africa
The massive 11.94 billion rand shortfall was just off the record gap of October last year, and was way above forecasts of a 3.3 billion rand deficit.
The South Africa Revenue Service (SARS) data -- which is notoriously volatile -- recorded an unexpected 0.39 billion rand surplus in December, raising hopes that the series of large deficits had ended.
Read more at Reuters South Africa
Rand takes a knock
The rand weakened against the dollar on Wednesday after a choppy session which saw the currency hit by poor trade numbers and continuing emerging market nervousness.
The rand zig-zagged in a 7-cent band in the session, losing about 0.7% after the trade numbers showed that South Africa's deficit ran at R11.9bn in January after a R0.39bn surplus in December.
At 17:25, the rand stood at R7.2880/$, slightly weaker than its New York close of R7.2780, and traders said the currency's short-term outlook was shaky in light of continuing global uncertainties.
Read more at FIN24.co.za
The rand zig-zagged in a 7-cent band in the session, losing about 0.7% after the trade numbers showed that South Africa's deficit ran at R11.9bn in January after a R0.39bn surplus in December.
At 17:25, the rand stood at R7.2880/$, slightly weaker than its New York close of R7.2780, and traders said the currency's short-term outlook was shaky in light of continuing global uncertainties.
Read more at FIN24.co.za
Gold rally set to continue
Standard Chartered Bank says gold's recent rally is set to continue.
Helen Henton, head of commodity research at Standard Chartered Bank says that framed in the context of current dollar weakness, the gold rally looks set to continue heading higher.
Read more at FIN24.co.za
Helen Henton, head of commodity research at Standard Chartered Bank says that framed in the context of current dollar weakness, the gold rally looks set to continue heading higher.
Read more at FIN24.co.za
Click fraud costs Google $1bn
Google on Thursday made public more information about the extent of click fraud on its ad network to further clarify what it says are misperceptions about the issue.
Loosely-defined, click fraud occurs when an internet ad is clicked upon for nefarious reasons, such as driving up a business competitor's ad costs.
The practice takes advantage of how internet advertisers pay a small fee to Google and other internet ad providers each time one of their ads is clicked upon.
Read more at FIN24.co.za
Loosely-defined, click fraud occurs when an internet ad is clicked upon for nefarious reasons, such as driving up a business competitor's ad costs.
The practice takes advantage of how internet advertisers pay a small fee to Google and other internet ad providers each time one of their ads is clicked upon.
Read more at FIN24.co.za
OPEC likely to keep oil output steady, Nigeria reiterates
OPEC is leaning towards maintaining current oil output when it meets on March 15, but there is a possibility it will opt for a small cut, Nigerian Minister of State for Petroleum Edmund Daukoru said on Tuesday.
Read more at Reuters South Africa
Read more at Reuters South Africa
S.Africa's Top 40 index opens over 2 pct down
South Africa's blue chip Top-40 index opened over 2 percent lower on Wednesday, after the Dow Jones industrial average slid over 3 percent on Tuesday.
At 0728 GMT, the top 40 index had slipped 2.18 percent, while the JSE All Share index was 2.24 percent weaker.
"It is a continuation of what happened yesterday. We actually outperformed other emerging markets and we are actually just playing catch up," a Cape Town-based trader said.
South African blue chips fell over 3 percent on Tuesday, posting their biggest one-day decline in more than seven months on worries about growth in China and news the government could slap a windfall tax on miners.
Read more at Reuters South Africa
At 0728 GMT, the top 40 index had slipped 2.18 percent, while the JSE All Share index was 2.24 percent weaker.
"It is a continuation of what happened yesterday. We actually outperformed other emerging markets and we are actually just playing catch up," a Cape Town-based trader said.
South African blue chips fell over 3 percent on Tuesday, posting their biggest one-day decline in more than seven months on worries about growth in China and news the government could slap a windfall tax on miners.
Read more at Reuters South Africa
Oil sinks on Chinese sell-off
Oil prices plunged in Asian trade on Wednesday in reaction to steep falls in the Chinese stock market on Tuesday and declines in bourses worldwide, said traders.
At 04:00 GMT New York's main oil futures contract, light sweet crude for delivery in April, was down $1.17 to $60.29 per barrel from $61.46 in late US trades.
Before its fall, the contract reached as high as $62.65 in US hours.
Brent North Sea crude for April delivery was down 96 cents at $60.40 a barrel.
Traders said the selloff in the Chinese stock market and declines in global markets drove crude prices lower.
Read more at FIN24.co.za
At 04:00 GMT New York's main oil futures contract, light sweet crude for delivery in April, was down $1.17 to $60.29 per barrel from $61.46 in late US trades.
Before its fall, the contract reached as high as $62.65 in US hours.
Brent North Sea crude for April delivery was down 96 cents at $60.40 a barrel.
Traders said the selloff in the Chinese stock market and declines in global markets drove crude prices lower.
Read more at FIN24.co.za
Weak rand at world's mercy
South Africa's rand firmed slightly on Wednesday after Tuesday's heavy losses but traders said it would stay under pressure and at the mercy of international developments and stock market movements.
The market would also be watching for local trade data due at 14:00, with the notoriously volatile trade balance expected to have swung back into deficit after December's unexpected, small surplus.
The domestic currency was trading at R7.2728/US$ at 08:55, a touch firmer than its previous close in New York of R7.2780.
Read more at FIN24.co.za
The market would also be watching for local trade data due at 14:00, with the notoriously volatile trade balance expected to have swung back into deficit after December's unexpected, small surplus.
The domestic currency was trading at R7.2728/US$ at 08:55, a touch firmer than its previous close in New York of R7.2780.
Read more at FIN24.co.za
Tuesday, February 27, 2007
'Say no to new windfall taxes'
The official opposition Democratic Alliance has written to Finance Minister Trevor Manuel urging him not to entertain extending windfall taxes beyond synfuels.
In a statement on Tuesday, DA finance spokesperson Ian Davidson said imposing windfall taxes "will hamper much needed investment into the resource industry sectors".
This follows a Business Day report that the task team set up by Manuel to investigate the issue of proposed windfall taxes in the synfuel industry had recommended a similar mechanism for the rest of the resource industry which may be earning excessive profits.
Read more FIN24.co.za
In a statement on Tuesday, DA finance spokesperson Ian Davidson said imposing windfall taxes "will hamper much needed investment into the resource industry sectors".
This follows a Business Day report that the task team set up by Manuel to investigate the issue of proposed windfall taxes in the synfuel industry had recommended a similar mechanism for the rest of the resource industry which may be earning excessive profits.
Read more FIN24.co.za
From bad to worse for US stocks
A computer glitch triggered a sudden plunge in the Dow Jones industrial average at mid-afternoon Tuesday, turning an already bad day in stocks into a head-turning spectacle.
Dow Jones & Co, the media company that manages the well-known index of 30 blue chip stocks, said it discovered shortly before 14:00 that its computers were not properly handling the day's huge volume in trades at the New York Stock Exchange.
It switched to a backup computer, and the result was a massive swoon in the index as the secondary system took over processing shortly before 15:00.
The Dow plunged about 200 points almost instantly, and was down as much as 546 points - its worst single-session decline in more than five years, and one that sent the blue chips into negative territory for the year.
Read more at FIN24.co.za
Dow Jones & Co, the media company that manages the well-known index of 30 blue chip stocks, said it discovered shortly before 14:00 that its computers were not properly handling the day's huge volume in trades at the New York Stock Exchange.
It switched to a backup computer, and the result was a massive swoon in the index as the secondary system took over processing shortly before 15:00.
The Dow plunged about 200 points almost instantly, and was down as much as 546 points - its worst single-session decline in more than five years, and one that sent the blue chips into negative territory for the year.
Read more at FIN24.co.za
Rand slides on emerging market jitters, stocks
South Africa's rand fell sharply against major currencies on Tuesday, following other emerging markets and equities lower as investors dropped riskier assets.
The local currency fell by up to 1.9 percent against the dollar in a nervous market that ignored better-than-expected economic growth data for Africa's biggest economy.
It was trading at 7.1899 against the greenback at 1515 GMT, 1.5 percent weaker than its previous close in New York of 7.0825 but off the session's trough of 7.2150.
It was last trading at around 9.50 to the euro, about 20 cents weaker on the day.
Traders said a drop in global equities hit emerging markets and yanked the rand out of its recent range of between 7.05 and 7.15 to the dollar.
Read more at Reuters South Africa
The local currency fell by up to 1.9 percent against the dollar in a nervous market that ignored better-than-expected economic growth data for Africa's biggest economy.
It was trading at 7.1899 against the greenback at 1515 GMT, 1.5 percent weaker than its previous close in New York of 7.0825 but off the session's trough of 7.2150.
It was last trading at around 9.50 to the euro, about 20 cents weaker on the day.
Traders said a drop in global equities hit emerging markets and yanked the rand out of its recent range of between 7.05 and 7.15 to the dollar.
Read more at Reuters South Africa
S.African stocks take beating on China and tax concerns
South African blue-chips fell over 3 percent on Tuesday, posting their biggest one-day decline in more than 5 months on worries about growth in China and news the government could slap a windfall tax on miners. Banking shares featured among the worst decliners on a day where over 4 percent drops were the norm. The JSE banking index slid 3.61 percent.
Mining shares also featured strongly among the worst hit, after a government-appointed task-team said South Africa should impose a windfall tax on excessive profits made by mining companies.
"Everything is falling, stemming from panic surrounding Chinese market. I just think it is a correction in the Chinese market, it had had a very strong run," Cadiz African Harvest portfolio manager Rajay Ambekar said. The Johannesburg Top-40 index of blue-chip stocks fell 3.49 percent to 23,435.34 points, tripping off a fresh all-time high it scored on Monday and posting its biggest one-day percentage fall since September 11, 2006. The broader All-share index dropped 3.17 percent to 26,078.30 points.
Read more at Reuters South Africa
Mining shares also featured strongly among the worst hit, after a government-appointed task-team said South Africa should impose a windfall tax on excessive profits made by mining companies.
"Everything is falling, stemming from panic surrounding Chinese market. I just think it is a correction in the Chinese market, it had had a very strong run," Cadiz African Harvest portfolio manager Rajay Ambekar said. The Johannesburg Top-40 index of blue-chip stocks fell 3.49 percent to 23,435.34 points, tripping off a fresh all-time high it scored on Monday and posting its biggest one-day percentage fall since September 11, 2006. The broader All-share index dropped 3.17 percent to 26,078.30 points.
Read more at Reuters South Africa
Dividend Facts You May Not Know
Money For Nothing" is not only the title of a song by Dire Straits in the '80s, but also the feeling many investors get when they receive a dividend. All you have to do is buy shares in the right company and you'll receive some of its earnings. How exciting is that? However, despite the advantage, there are several implications involved in the paying and receiving of dividends that the casual investor may not be aware of. This article will explain several of these. But first, let's begin with a short primer.
Read the full article at investopedia.com
Read the full article at investopedia.com
Wednesday, February 21, 2007
Gold flat; mood bullish after heavy fund buying
Gold was little changed on Thursday, with sentiment remaining bullish after it surged more than 3 percent to a nine-month high as strong energy prices and geopolitical tensions induced heavy fund buying.
Traders were eager to test the metal's upside after Wednesday's rally, with demand rising for gold exchange-traded funds (ETF) and investors keen to diversify into gold and other commodities as U.S. equity prices were holding near record highs.
Gold's allure as a tool to hedge against inflation also rose after a surprisingly big pick-up in core U.S. consumer prices in January.
Read more at Reuters South Africa
Traders were eager to test the metal's upside after Wednesday's rally, with demand rising for gold exchange-traded funds (ETF) and investors keen to diversify into gold and other commodities as U.S. equity prices were holding near record highs.
Gold's allure as a tool to hedge against inflation also rose after a surprisingly big pick-up in core U.S. consumer prices in January.
Read more at Reuters South Africa
Master Your Trading Mindtraps
The popularization of speculative trading activity in the financial markets, partly due to the development of retail trading solutions offered on the internet, has created a new population of traders in the market. Most of these traders are non-professionals that are attracted by the potential to generate revenue quickly.
Read more at investopedia.com
Read more at investopedia.com
Inflation 'still in check'
The inflation rate targeted by South Africa's central bank quickened in January, official data showed on Wednesday, keeping open the possibility of another rate hike.
Statistics South Africa said the CPIX inflation rate rose by 5.3% in the year to January, slightly above forecasts of 5.2%, after 5.0% in December.
The Reserve Bank kept its key repo rate steady at 9% last week after 200 basis points worth of hikes last year, saying the inflation outlook had improved.
Read more at FIN24.co.za
Statistics South Africa said the CPIX inflation rate rose by 5.3% in the year to January, slightly above forecasts of 5.2%, after 5.0% in December.
The Reserve Bank kept its key repo rate steady at 9% last week after 200 basis points worth of hikes last year, saying the inflation outlook had improved.
Read more at FIN24.co.za
Manuel optimistic about growth
Finance minister Trevor Manuel is a whole lot more optimistic about economic growth than economists in the private sector.
He is predicting a growth rate of 4.8% in 2007 - compared with forecasts of 4.4% in the private sector.
Manuel also revealed what most economists have predicted - that gross domestic product (GDP) grew by 4.9% last year. The final figures will only be available next week, when Statistics SA releases the GDP figures for the last quarter of the year.
The Budget Review said that continued strong investment and improved net trade would support growth in 2007. As the international environment improved and the supply capacity of the economy expanded, domestic growth was expected to accelerate to 5.4% in 2009.
Read more at FIN24.co.za
He is predicting a growth rate of 4.8% in 2007 - compared with forecasts of 4.4% in the private sector.
Manuel also revealed what most economists have predicted - that gross domestic product (GDP) grew by 4.9% last year. The final figures will only be available next week, when Statistics SA releases the GDP figures for the last quarter of the year.
The Budget Review said that continued strong investment and improved net trade would support growth in 2007. As the international environment improved and the supply capacity of the economy expanded, domestic growth was expected to accelerate to 5.4% in 2009.
Read more at FIN24.co.za
Telkom loses $130m IT fight
Fixed-line phone operator Telkom has lost a bid to overturn a ruling against it in a $130m dispute with US software and IT firm Telcordia, Telkom said on Wednesday.
Telkom said in a statement it expected to start arbitration with Telcordia Technologies in September to determine how much it would have to pay in compensation.
Telcordia is seeking $130m in damages in the dispute over a cancelled contract, Telkom said in November, arguing a fairer price was around $50m.
Read more at FIN24.co.za
Telkom said in a statement it expected to start arbitration with Telcordia Technologies in September to determine how much it would have to pay in compensation.
Telcordia is seeking $130m in damages in the dispute over a cancelled contract, Telkom said in November, arguing a fairer price was around $50m.
Read more at FIN24.co.za
Sinners coughing up
It's enough to make a ou give up smoking. And drinking.
Well, maybe not drinking. But when you go to the pub now, you're going to have to bleddy walk, because he's bleddy put up the price of petrol as well.
Finance Minister Trevor Manuel on Wednesday announced the customary increases in sin taxes - the government's cut on cigarettes and booze - and a hike in both the fuel and Road Accident Fund levies.
Read more from FIN24.co.za
Well, maybe not drinking. But when you go to the pub now, you're going to have to bleddy walk, because he's bleddy put up the price of petrol as well.
Finance Minister Trevor Manuel on Wednesday announced the customary increases in sin taxes - the government's cut on cigarettes and booze - and a hike in both the fuel and Road Accident Fund levies.
Read more from FIN24.co.za
Retirement nest set to grow
People saving for retirement would see their nest eggs significantly enhanced when the retirement fund levy was abolished next month, the Life Offices' Association said on Wednesday.
Significant strides had been made in reforming the South African retirement savings environment in the past year, said its chief executive Gerhard Joubert.
Read more at FIN24.co.za
Significant strides had been made in reforming the South African retirement savings environment in the past year, said its chief executive Gerhard Joubert.
Read more at FIN24.co.za
Govt passes economy test
About two-thirds of South African adults (66%) agree that the government is managing the economy very or fairly well, while just more than half (54%) think that the government's performance in controlling inflation was managed very or fairly well.
These are among the findings of the Government Performance Barometer, a biannual study conducted by Markinor. A total of 3 500 respondents, representative of the adult population in South Africa, were interviewed in November last year.
Read more at FIN24.co.za
These are among the findings of the Government Performance Barometer, a biannual study conducted by Markinor. A total of 3 500 respondents, representative of the adult population in South Africa, were interviewed in November last year.
Read more at FIN24.co.za
Zim bakeries halt production
Shops in Zimbabwe were running out of bread on Wednesday after most bakeries halted production, claiming government price controls and escalating production costs had made their businesses unviable.
Bread shelves in major supermarkets across Harare were empty while others had only a few loaves. A few stores did have scones, rolls and buns on sale as the government does not set their prices.
Read more at FIN24.co.za
Bread shelves in major supermarkets across Harare were empty while others had only a few loaves. A few stores did have scones, rolls and buns on sale as the government does not set their prices.
Read more at FIN24.co.za
Power alert for SA
Eskom on Wednesday warned that it is experiencing a higher than expected demand for electricity which can largely be ascribed to the current heatwave.
In addition there has also been a number of unplanned outages of generating units, Eskom said in a statement.
Read more at FIN24.co.za
In addition there has also been a number of unplanned outages of generating units, Eskom said in a statement.
Read more at FIN24.co.za
Steinhoff to buy rest of Unitrans
Transport and logistics group Unitrans said on Wednesday it would dispose of its entire business to a subsidiary of furniture manufacturer Steinhoff, sending its shares lower.
Unitrans said minority shareholders would receive two Steinhoff shares for each Unitrans share held. Steinhoff already owns 60.76% of Unitrans.
Read more at FIN24.co.za
Unitrans said minority shareholders would receive two Steinhoff shares for each Unitrans share held. Steinhoff already owns 60.76% of Unitrans.
Read more at FIN24.co.za
FirstRand sees earnings up 28%
Financial services group FirstRand expected first-half basic and diluted headline earnings per share to increase by as much as 28%, the group said on Wednesday.
Read more at FIN24.co.za
Read more at FIN24.co.za
Truworths cancels 7.5% of shares
Fashion retailer Truworths has cancelled 7.47% of its shares in issue and applied to delist them, it said on Wednesday.
Truworths said it had decided to cancel the shares, which were owned by a subsidiary company, to restructure its balance sheet and enable it to continue its treasury share buyback programme.
Read more at FIN24.co.za
Truworths said it had decided to cancel the shares, which were owned by a subsidiary company, to restructure its balance sheet and enable it to continue its treasury share buyback programme.
Read more at FIN24.co.za
Absa Economic Research
Comments on current economic issues
21 February
Chart of the Week (60KB)
According to the World Economic Forum’s Global Competitiveness report for 2006-07, the most competitive economies are those of Switzerland, Finland and Sweden. The USA which was ranked 1st in 2005, experienced the biggest drop, falling to 6th place in 2006. ... more
21 February
Chart of the Week (60KB)
According to the World Economic Forum’s Global Competitiveness report for 2006-07, the most competitive economies are those of Switzerland, Finland and Sweden. The USA which was ranked 1st in 2005, experienced the biggest drop, falling to 6th place in 2006. ... more
U.K. Stocks Pay Europe's Highest Dividends, Fail to Lure Buyers
Stock investors who hunt for high yields in Europe are looking everywhere except the U.K., where companies pay the biggest dividends in the world's major markets.
Britain's FTSE 100 Index is lagging behind the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, for a third year. The pound's 13 percent rally against the dollar in the past 12 months and rising interest rates are weighing on earnings and share prices.
The slowdown in profit growth is enough to deter money managers even though FTSE 100 companies' dividend payments relative to share prices are 16 percent higher than those in the 13 countries sharing the euro, according to data compiled by Bloomberg. Dividends for the FTSE 100 are two-thirds more than those of the Dow Jones Industrial Average in the U.S. and are almost quadruple those of Japan's Nikkei-225 Stock Average
Read more at Bloomberg.com
Britain's FTSE 100 Index is lagging behind the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, for a third year. The pound's 13 percent rally against the dollar in the past 12 months and rising interest rates are weighing on earnings and share prices.
The slowdown in profit growth is enough to deter money managers even though FTSE 100 companies' dividend payments relative to share prices are 16 percent higher than those in the 13 countries sharing the euro, according to data compiled by Bloomberg. Dividends for the FTSE 100 are two-thirds more than those of the Dow Jones Industrial Average in the U.S. and are almost quadruple those of Japan's Nikkei-225 Stock Average
Read more at Bloomberg.com
S. Africa's Manuel to Propose Compulsory Pension Plan
South African Finance Minister Trevor Manuel may forecast the country's first budget surplus since at least 1960 tomorrow and propose a compulsory pension and medical plan to increase savings by individuals.
In his 11th budget, Manuel probably will revise his forecast for a deficit of 0.4 percent of gross domestic product in the year that ends March 31 after a tax windfall, said Arthur Kamp, an economist at Sanlam Investment Management. The finance minister starts his speech to parliament in Cape Town at 2 p.m.
A consumer spending boom, higher gold and platinum prices and a weaker rand have driven up profits in Africa's biggest economy. Now the government is seeking to increase savings and finance the investment needed to lift economic growth further.
Read more at Bloomberg.com
In his 11th budget, Manuel probably will revise his forecast for a deficit of 0.4 percent of gross domestic product in the year that ends March 31 after a tax windfall, said Arthur Kamp, an economist at Sanlam Investment Management. The finance minister starts his speech to parliament in Cape Town at 2 p.m.
A consumer spending boom, higher gold and platinum prices and a weaker rand have driven up profits in Africa's biggest economy. Now the government is seeking to increase savings and finance the investment needed to lift economic growth further.
Read more at Bloomberg.com
Corn Farms Replace New York Lofts as Hottest Property
Farmland from Iowa to Argentina is rising faster in price than apartments in Manhattan and London for the first time in 30 years.
Demand for corn used in ethanol increased the value of crop land 16 percent in Indiana and 35 percent in Idaho in 2006, government figures show. The price of a Soho loft appreciated only 12 percent, while a pied-a-terre in Islington near London's financial district gained 11 percent, according to realtors.
Farmland returns will take a quantum leap over the next 18 months,'' after corn prices surged to a 10-year high in February, said Murray Wise, the 58-year-old chairman and chief executive officer of Westchester Group Inc. in Champaign, Illinois, who oversees $460 million of land investments
Read more at Bloomberg.com
Demand for corn used in ethanol increased the value of crop land 16 percent in Indiana and 35 percent in Idaho in 2006, government figures show. The price of a Soho loft appreciated only 12 percent, while a pied-a-terre in Islington near London's financial district gained 11 percent, according to realtors.
Farmland returns will take a quantum leap over the next 18 months,'' after corn prices surged to a 10-year high in February, said Murray Wise, the 58-year-old chairman and chief executive officer of Westchester Group Inc. in Champaign, Illinois, who oversees $460 million of land investments
Read more at Bloomberg.com
Evraz wins EU conditional OK to buy Highveld
Evraz Group, Russia's top steel maker by volume, won a conditional approval from the European Commission on Tuesday to buy South African steelmaker Highveld for $678 million.
The Commission said that, given the commitments made by Evraz, "the Commission has concluded that the proposed transaction would not significantly impede effective competition in the European Economic Area".
Highveld, South Africa's second-largest steel maker, is the world's top supplier of vanadium, used in the production of special and alloy steels. The company is being sold by Anglo American Plc.
Read more at Reuters South Africa
The Commission said that, given the commitments made by Evraz, "the Commission has concluded that the proposed transaction would not significantly impede effective competition in the European Economic Area".
Highveld, South Africa's second-largest steel maker, is the world's top supplier of vanadium, used in the production of special and alloy steels. The company is being sold by Anglo American Plc.
Read more at Reuters South Africa
R331m at the age of 33
Just one of many interesting deals over R5m by the directors of JSE companies.
Last October, at the tender age of 33, Philippa Johnson of Cape Town received R331m in cash for a tranche of shares in Atlas Properties.
This was just one of many eyebrow-raising deals over R5m by the directors of JSE companies in the past six months.
Atlas CEO Ian Raubenheimer explains that the young Johnson received that wad of cash on behalf of a family trust, which sold some 31% of Atlas to Acucap. Johnson was a non-executive director of Atlas at the time of the sale, so it was recorded in her name. Her father, Peter Irvine, one of the founders of Atlas, died in 2005.
The shares were part of his estate and the huge pile of money accrued to Johnson, her mother and three sisters.
JJM van Zyl, a cousin of the Irvine's, is listed as the seller of another R70m of Atlas shares, apparently to Growthpoint.
Another mega-deal last July was the R371m sale of Steinhoff shares by directors Bruno Steinhoff, Markus Jooste, Hendrik Ferreira and Johannes Neethling.
Read more at MoneyWeb.co.za
Last October, at the tender age of 33, Philippa Johnson of Cape Town received R331m in cash for a tranche of shares in Atlas Properties.
This was just one of many eyebrow-raising deals over R5m by the directors of JSE companies in the past six months.
Atlas CEO Ian Raubenheimer explains that the young Johnson received that wad of cash on behalf of a family trust, which sold some 31% of Atlas to Acucap. Johnson was a non-executive director of Atlas at the time of the sale, so it was recorded in her name. Her father, Peter Irvine, one of the founders of Atlas, died in 2005.
The shares were part of his estate and the huge pile of money accrued to Johnson, her mother and three sisters.
JJM van Zyl, a cousin of the Irvine's, is listed as the seller of another R70m of Atlas shares, apparently to Growthpoint.
Another mega-deal last July was the R371m sale of Steinhoff shares by directors Bruno Steinhoff, Markus Jooste, Hendrik Ferreira and Johannes Neethling.
Read more at MoneyWeb.co.za
Is it a good time to invest in a second property?
Investors who want a substantial share of the investment property market should focus on the lower end of the sector.
Experts agree that properties above R1,5m offer little capital growth and extremely low yields, while properties below R500 000 hold the best value.
"The growth opportunities at the lower end of the market are huge," reckoned Allister Long, MD of property services consultancy, Powerhouse.
Demand for housing is outweighing supply and this will keep the market exceptionally buoyant, he explained.
Read more at MoneyWeb.co.za
Experts agree that properties above R1,5m offer little capital growth and extremely low yields, while properties below R500 000 hold the best value.
"The growth opportunities at the lower end of the market are huge," reckoned Allister Long, MD of property services consultancy, Powerhouse.
Demand for housing is outweighing supply and this will keep the market exceptionally buoyant, he explained.
Read more at MoneyWeb.co.za
Tuesday, February 20, 2007
Anglo American profit up 46 pct, to return $3 bln
Anglo American Plc, the world's third-largest miner, said on Wednesday it would return $3 billion to investors as it posted a 46 percent rise in annual net profit, at the bottom end of forecasts.
Anglo said in a statement it made a net profit of $5.47 billion in 2006, on revenue up 12 percent at $38.6 billion. The final dividend was raised 21 percent to 75 cents.
Read more at Reuters South Africa
Anglo said in a statement it made a net profit of $5.47 billion in 2006, on revenue up 12 percent at $38.6 billion. The final dividend was raised 21 percent to 75 cents.
Read more at Reuters South Africa
Tiger Brands to sell Dairybelle unit
South Africa's food and pharmaceuticals group Tiger Brands has agreed to sell its Dairybelle unit to a consortium of investors, which will likely include management and staff, it said on Wednesday.
Read more at Reuters South Africa
Read more at Reuters South Africa
Mittal FY earnings down 8 pct on costs
South Africa's Mittal Steel, a unit of the world's top steel group, said headline earnings for the year to end December fell 8 percent to 4.646 billion rand, due to higher input costs.
Mittal SA, which is owned by Arcelor Mittal, said the decline in earnings was offset by an increase in domestic sales and a weaker rand/U.S. dollar exchange rate.
Read more at Reuters South Africa
Mittal SA, which is owned by Arcelor Mittal, said the decline in earnings was offset by an increase in domestic sales and a weaker rand/U.S. dollar exchange rate.
Read more at Reuters South Africa
De Beers agrees to sell diamonds to Canada cutters
De Beers Canada will have to offer 10 percent of the diamonds it mines from its Snap Lake operation to cutters and polishers in the Northwest Territories, according to an agreement with the territory's government released on Tuesday.
The deal, which has been in the works for several years and is in line with the northern Canadian region's policy of supporting its secondary diamond industry, takes effect in 2008.
Read more at Reuters South Africa
The deal, which has been in the works for several years and is in line with the northern Canadian region's policy of supporting its secondary diamond industry, takes effect in 2008.
Read more at Reuters South Africa
S.Africa may cut company taxes in Wednesday's budget
South Africa's government could offer much-needed tax relief for struggling companies on Wednesday when it unveils, as widely expected, the country's first budget surplus.
Finance Minister Trevor Manuel presents his 2007/08 budget proposals to parliament against the background of booming consumer demand that has led to a gaping current account deficit and weakened the rand.
Read more at Reuters South Africa
Finance Minister Trevor Manuel presents his 2007/08 budget proposals to parliament against the background of booming consumer demand that has led to a gaping current account deficit and weakened the rand.
Read more at Reuters South Africa
Middle East, Africa sovereign borrowing to fall - S&P
Middle East and African countries rated by Standard & Poor's are expected to borrow a net $6 billion in 2007, less than half the amount in 2006 as high oil revenues in the regions have contributed to repayments.
"Privatisation receipts, especially in Egypt, also contributed to debt repayments," S&P sovereign credit analyst Farouk Soussa told Reuters on Tuesday.
S&P expects gross medium and long-term commercial borrowing of $60 billion in 2007. Given amortizations of $53.9 billion, net borrowing will be $6 billion for the year versus net borrowing in 2006 of $15 billion, the report said.
Read more at Reuters South Africa
"Privatisation receipts, especially in Egypt, also contributed to debt repayments," S&P sovereign credit analyst Farouk Soussa told Reuters on Tuesday.
S&P expects gross medium and long-term commercial borrowing of $60 billion in 2007. Given amortizations of $53.9 billion, net borrowing will be $6 billion for the year versus net borrowing in 2006 of $15 billion, the report said.
Read more at Reuters South Africa
Yen dips before BOJ rate decision
The yen slipped against the dollar and euro as investors questioned whether a possible interest rate rise by the Bank of Japan on Wednesday would do much to shore up the struggling Japanese currency.
Market players are divided over whether the BOJ will lift rates to a decade-high of 0.5 percent from 0.25 percent, and traders say the yen could move in either direction depending on what the central bank decides.
But even if the BOJ lifts rates, investors increasingly believe the yen will ultimately suffer with rates so much higher at 5.25 percent in the United States and 3.5 percent in the euro zone, and the BOJ is seen likely to take a while before tightening policy further.
Read more at Reuters South Africa
Market players are divided over whether the BOJ will lift rates to a decade-high of 0.5 percent from 0.25 percent, and traders say the yen could move in either direction depending on what the central bank decides.
But even if the BOJ lifts rates, investors increasingly believe the yen will ultimately suffer with rates so much higher at 5.25 percent in the United States and 3.5 percent in the euro zone, and the BOJ is seen likely to take a while before tightening policy further.
Read more at Reuters South Africa
EU approves Freeport's purchase of Phelps Dodge
Freeport-McMoRan Copper & Gold Inc. won permission from the European Commission on Tuesday to buy much larger Phelps Dodge Corp. for $25.9 billion in cash and stock.
The deal, which would create the world's largest publicly traded copper company, won approval from U.S. antitrust authorities in December.
Freeport-McMoRan will pay $126.46 per Phelps Dodge share, a premium of 33 percent to Phelps Dodge's November 17 closing price.
Read more at Reuters South Africa
The deal, which would create the world's largest publicly traded copper company, won approval from U.S. antitrust authorities in December.
Freeport-McMoRan will pay $126.46 per Phelps Dodge share, a premium of 33 percent to Phelps Dodge's November 17 closing price.
Read more at Reuters South Africa
Arcelor Mittal 06 profit slightly below consensus
Arcelor Mittal, the world's largest steelmaker, reported a 2006 core profit of $15.3 billion on Wednesday, slightly below market expectations but in line with its own forecast.
Analysts polled by Reuters expected EBITDA (earnings before interest, tax, depreciation and amortisation) on average at $15.4 billion.
The steel giant previously told investors it saw core earnings coming in between $15.2 billion and 15.4 billion.
Arcelor Mittal also gave financial guidance for the first quarter of 2007, projecting core earnings to reach between $4.0 and $4.2 billion, in line with the last quarter of 2006.
Read more at Reuters South Africa
Analysts polled by Reuters expected EBITDA (earnings before interest, tax, depreciation and amortisation) on average at $15.4 billion.
The steel giant previously told investors it saw core earnings coming in between $15.2 billion and 15.4 billion.
Arcelor Mittal also gave financial guidance for the first quarter of 2007, projecting core earnings to reach between $4.0 and $4.2 billion, in line with the last quarter of 2006.
Read more at Reuters South Africa
Rand firms slightly on dollar, awaits budget
South Africa's rand gained modestly against the dollar on Wednesday morning in a session seen largely quiet ahead of the 2007/08 national budget later in the day.
The rand was at 7.1165 against the dollar at 0645 GMT compared to its New York close of 7.1225 on Tuesday.
"The rand is trading very quietly, it looks like we'll settle in yesterday's ranges and wait to see if there are any surprises in the budget," said Rand Merchant Bank trader Jim Bryson.
"The budget has not really moved the rand over the last couple of years so we are not really expecting much," he added.
The market, however, would be keen to see if Finance Minister Trevor Manuel announced any changes to foreign exchange regulations and taxes on foreign investment in his speech to parliament due to start at 1200 GMT.
Read more at Reuters South Africa
The rand was at 7.1165 against the dollar at 0645 GMT compared to its New York close of 7.1225 on Tuesday.
"The rand is trading very quietly, it looks like we'll settle in yesterday's ranges and wait to see if there are any surprises in the budget," said Rand Merchant Bank trader Jim Bryson.
"The budget has not really moved the rand over the last couple of years so we are not really expecting much," he added.
The market, however, would be keen to see if Finance Minister Trevor Manuel announced any changes to foreign exchange regulations and taxes on foreign investment in his speech to parliament due to start at 1200 GMT.
Read more at Reuters South Africa
Three Kinds Of Analysts And What You Need To Know About Them
There are several types of "analysts" on Wall Street, and they produce different kinds of reports because they have different kinds of clients. This article will define the three main categories of analysts and briefly touch on analyst independence.
Read the full article at investopedia.com
Read the full article at investopedia.com
KWV earnings surge 59%
Alcoholic beverages group KWV Investments (KWV) increased headline earnings per share by 59% from 201.9c to 321.7c for the six months ended 31 December 2006.
Headline earnings increased from R84.8 to R135 for the half-year.
The group declared an interim dividend of 120c/share, a 26.3% increase on the 95c dividend per share for the previous comparative half-year.
Read more at FIN24.co.za
Headline earnings increased from R84.8 to R135 for the half-year.
The group declared an interim dividend of 120c/share, a 26.3% increase on the 95c dividend per share for the previous comparative half-year.
Read more at FIN24.co.za
MTN cuts data rates
MTN has reduced rates on data contracts and data bundles by up to 20%.
MTN South Africa's General Manager: Consumer Marketing, Donovan Smith, says: "We believe that the broader population, both contract and Pay as you Go customers, can benefit immensely from having affordable access to broadband, and as Network Operators we need to acknowledge the obvious barriers to entry.
Read more at FIN24.co.za
MTN South Africa's General Manager: Consumer Marketing, Donovan Smith, says: "We believe that the broader population, both contract and Pay as you Go customers, can benefit immensely from having affordable access to broadband, and as Network Operators we need to acknowledge the obvious barriers to entry.
Read more at FIN24.co.za
Woolies recalls own pet foods
As a precaution, Woolworths has withdrawn all Woolworths branded dry dog and cat food from its shelves, due to concern that there is a small possibility that some customers' pets may be at risk from micro traces of a contaminant which has been identified in some batches of Woolworths labelled dry dog food.
The store said customers may return any existing dry dog or cat food to a Woolworths store for a full refund.
Read more at Fin24.co.za
The store said customers may return any existing dry dog or cat food to a Woolworths store for a full refund.
Read more at Fin24.co.za
Shoprite sees continued growth
Africa's largest grocery retailer, Shoprite Holdings Ltd, posted a 26-percent rise in first-half earnings on Tuesday, and forecast continued growth in the second half of its financial year.
Shoprite said despite interest rates edging up, consumer spending remained high with no noticeable change in spending patterns in the food retail sector.
"Credit is still widely available to consumers and the swing away from cash is only now starting to stabilise in, for instance, the durable and semi-durable market," the firm said.
Read more at FIN24.co.za
Shoprite said despite interest rates edging up, consumer spending remained high with no noticeable change in spending patterns in the food retail sector.
"Credit is still widely available to consumers and the swing away from cash is only now starting to stabilise in, for instance, the durable and semi-durable market," the firm said.
Read more at FIN24.co.za
Absa to 'maximise potential'
Apart from the all-round improvement in results, two things stand out from the Absa preliminary report for the year to December, the first full year since the Barclays takeover: synergies from the takeover are coming through faster than expected, and the bank is a major beneficiary of the battle for increased share of the competitive credit card market.
Absa had hoped to reap synergistic gains of R300m by December 2006: it achieved R753m, already ahead of the target for December 2007, with associated costs of R640m - R30m less than expected by now - in spite of the slower than hoped merger with Barclays' interests in the rest of Africa.
Read more at FIN24.co.za
Absa had hoped to reap synergistic gains of R300m by December 2006: it achieved R753m, already ahead of the target for December 2007, with associated costs of R640m - R30m less than expected by now - in spite of the slower than hoped merger with Barclays' interests in the rest of Africa.
Read more at FIN24.co.za
ARM outlook rosy
African Rainbow Minerals Ltd (ARM) said higher metal prices boosted headline earnings per share fourfold to 264c in the first half to end December and forecast strong earnings ahead.
The diversified mining group said on Tuesday higher prices for platinum, nickel, iron ore, manganese and its coal unit had driven headline EPS from 64c a year ago, but exploration and rising corporate costs had watered down the gains.
ARM saw more price gains in the second half of its financial year. "Our operations will continue to be favourably impacted by the current buoyant commodity cycle," it said in a statement.
Read more at FIN24.co.za
The diversified mining group said on Tuesday higher prices for platinum, nickel, iron ore, manganese and its coal unit had driven headline EPS from 64c a year ago, but exploration and rising corporate costs had watered down the gains.
ARM saw more price gains in the second half of its financial year. "Our operations will continue to be favourably impacted by the current buoyant commodity cycle," it said in a statement.
Read more at FIN24.co.za
Who'll be the Budget winners?
The government could offer much-needed tax relief for struggling companies on Wednesday when it unveils, as widely expected, the country's first budget surplus.
Finance Minister Trevor Manuel presents his 2007/08 budget proposals to parliament against the background of booming consumer demand that has led to a gaping current account deficit and weakened the rand.
Read more at FIN24.co.za
Finance Minister Trevor Manuel presents his 2007/08 budget proposals to parliament against the background of booming consumer demand that has led to a gaping current account deficit and weakened the rand.
Read more at FIN24.co.za
U.S. Stock-Index Futures Fall After Home Depot Trails Estimates
U.S. stock-index futures fell after profit that missed analysts' estimates at Home Depot Inc., the world's largest home-improvement retailer, heightened concern that earnings growth is slowing.
Home Depot's report comes as fourth-quarter profits at Standard & Poor's 500 Index members are poised to increase less than 10 percent for the first three-month period since 2002. Intel Corp. and International Business Machines Corp. are among companies that fell short of expectations.
Read more at Bloomberg.com
Home Depot's report comes as fourth-quarter profits at Standard & Poor's 500 Index members are poised to increase less than 10 percent for the first three-month period since 2002. Intel Corp. and International Business Machines Corp. are among companies that fell short of expectations.
Read more at Bloomberg.com
Wal-Mart Profit Increases 9.8% on Holiday Discounts
Wal-Mart Stores Inc., the world's largest retailer, said fourth-quarter profit rose 9.8 percent, exceeding analysts' estimates as the company discounted toys and consumer electronics to attract holiday shoppers.
Net income in the three months ended Jan. 31 rose to $3.94 billion, or 95 cents a share, including a 2-cent tax benefit, the Bentonville, Arkansas-based company said today in a statement. Analysts surveyed by Bloomberg estimated 90 cents.
Fourth-quarter sales at stores open at least a year gained 1.6 percent as Wal-Mart cut prices on items ranging from generic drugs to groceries. Chief Executive Officer H. Lee Scott re-emphasized the company's "low-price'' message after failing to lure consumers with exclusive lines of clothing
Read more at Bloomberg.com
Net income in the three months ended Jan. 31 rose to $3.94 billion, or 95 cents a share, including a 2-cent tax benefit, the Bentonville, Arkansas-based company said today in a statement. Analysts surveyed by Bloomberg estimated 90 cents.
Fourth-quarter sales at stores open at least a year gained 1.6 percent as Wal-Mart cut prices on items ranging from generic drugs to groceries. Chief Executive Officer H. Lee Scott re-emphasized the company's "low-price'' message after failing to lure consumers with exclusive lines of clothing
Read more at Bloomberg.com
S.Africa maize surges to new peak on weather fears
South Africa's most traded maize futures jumped by almost four per cent on Tuesday to a fresh four-year peak amid worries hot temperatures and dry weather in the grain heartland would persist, resulting in a smaller yield.
The July white maize contract shot 65 rand higher or 3.89 percent to hit its daily trade limit, closing at 1,736 rand a tonne.
The March white maize contract also clocked up 60 rand to 1,683 rand a tonne, 3.7 percent higher.
Maize prices have been on an upward trend since the new year, buoyed by a stubborn lack of rainfall and a heatwave sweeping parts of key crop-growing regions, including the North West and Free State provinces, said traders.
Read more at Reuters South Africa
The July white maize contract shot 65 rand higher or 3.89 percent to hit its daily trade limit, closing at 1,736 rand a tonne.
The March white maize contract also clocked up 60 rand to 1,683 rand a tonne, 3.7 percent higher.
Maize prices have been on an upward trend since the new year, buoyed by a stubborn lack of rainfall and a heatwave sweeping parts of key crop-growing regions, including the North West and Free State provinces, said traders.
Read more at Reuters South Africa
Gold stalls but seen heading higher
Gold prices were slightly softer on Tuesday, but analysts said a fundamentally weaker dollar and stronger demand from investors, jewellery makers and central banks could push prices higher in the future.
Spot gold was at $666.90/667.60 an ounce by 1125 GMT from $670.60/671.30 in Europe late on Monday, when it hit a seven-month high of $673.20, about $3 short of strong technical resistance at $676.
Read more at Reuters South Africa
Spot gold was at $666.90/667.60 an ounce by 1125 GMT from $670.60/671.30 in Europe late on Monday, when it hit a seven-month high of $673.20, about $3 short of strong technical resistance at $676.
Read more at Reuters South Africa
European stocks slip as company updates disappoint
European shares retreated on Tuesday from six-year highs hit in the previous session, hurt by disappointing updates from firms including Cadbury Schweppes and Carlsberg.
Energy stocks also crowded the losers list, with Total and BP both down 0.5 percent as London Brent crude extended losses, down 0.5 percent at below $58 a barrel.
By 1225 GMT, the pan-European FTSEurofirst 300 index was 0.3 percent weaker at 1,545.1, easing from a six-year high of 1,552.6 struck on Monday.
The benchmark index is up about 4 percent so far this year, boosted by mostly stronger-than-expected results in recent weeks and mergers and acquisitions.
Read more at Reuters South Africa
Energy stocks also crowded the losers list, with Total and BP both down 0.5 percent as London Brent crude extended losses, down 0.5 percent at below $58 a barrel.
By 1225 GMT, the pan-European FTSEurofirst 300 index was 0.3 percent weaker at 1,545.1, easing from a six-year high of 1,552.6 struck on Monday.
The benchmark index is up about 4 percent so far this year, boosted by mostly stronger-than-expected results in recent weeks and mergers and acquisitions.
Read more at Reuters South Africa
Sun Int. boosts profit, eyes expansion
South Africa's biggest casino operator Sun International boosted first-half diluted adjusted headline earnings per share by 32 percent and unveiled plans on Tuesday to expand in Britain and Nigeria.
Read more at Reuters South Africa
Read more at Reuters South Africa
US Marines order 90 SA vehicles
The US Marine Corps has placed a US$55.4m order for 90 South African-designed RG33 mine-resistant and ambush-proof vehicles.
BAE Systems' South African unit, Land Systems OMC, won the order after turning around a request for a proposal from a clean-sheet design to delivering a working, blast-tested prototype in under seven weeks.
Read more at FIN24.co.za
BAE Systems' South African unit, Land Systems OMC, won the order after turning around a request for a proposal from a clean-sheet design to delivering a working, blast-tested prototype in under seven weeks.
Read more at FIN24.co.za
Base metals market drifts, looks beyond holiday
Base metal prices mostly drifted down on the London Metal Exchange on Tuesday, but the market is well supported as it awaits the return of Chinese buyers after their Lunar New Year holiday.
"The Chinese are away from the market -- it is relatively quiet this week but the market will remain well supported at current levels," analyst Michael Widmer at Calyon said.
The Chinese holiday would leave markets subdued, Widmer said, but saw nothing to suggest any big drop in prices.
Three-months lead was at $1,760/1,770 a tonne by 1018 GMT from $1,780 on Monday, when it hit a new contract high of $1,815.
Read more at Reuters South Africa
"The Chinese are away from the market -- it is relatively quiet this week but the market will remain well supported at current levels," analyst Michael Widmer at Calyon said.
The Chinese holiday would leave markets subdued, Widmer said, but saw nothing to suggest any big drop in prices.
Three-months lead was at $1,760/1,770 a tonne by 1018 GMT from $1,780 on Monday, when it hit a new contract high of $1,815.
Read more at Reuters South Africa
S.Africa and Russia in talks on uranium processing
Major producers South Africa and Russia are in talks about cooperating to process uranium for sale on the international market, South Africa's mining minister told Reuters on Tuesday.
Buyelwa Sonjica said Russia was actively courting South Africa and other countries to support the proposed establishment of international nuclear centres which would sell nuclear fuel.
Read more at Reuters South Africa
Buyelwa Sonjica said Russia was actively courting South Africa and other countries to support the proposed establishment of international nuclear centres which would sell nuclear fuel.
Read more at Reuters South Africa
SMS revenue to top $67bn
Revenue from SMSs is expected to reach $67bn by 2012, according to a new report by Portio Research.
The report, entitled Mobile Messaging Futures 2007 -2012, says, however, that the growth of SMS revenues will not be as aggressive as the growth of SMS volumes due to declining prices.
The figure of $67bn will be driven by 3.7 trillion messages.
Read more at FIN24.co.za
The report, entitled Mobile Messaging Futures 2007 -2012, says, however, that the growth of SMS revenues will not be as aggressive as the growth of SMS volumes due to declining prices.
The figure of $67bn will be driven by 3.7 trillion messages.
Read more at FIN24.co.za
Standard Bank Economics Reports
Market forecast
Monthly short- to medium-term foreign exchange, inflation and interest rate outlook.
Macroeconomic forecast
Long-term annual forecasts of growth, inflation, interest rates and exchange rates.
Tanzania: Blueprint 2007
Economic growth is expected to accelerate to 7.3% in 2007 from 5.9% in 2006, as the country emerges from the retarding effects of the drought that caused a severe energy shortage and underproduction in the agriculture sector.
Mozambique: Blueprint 2007
After declining for four consecutive months to this year’s low of 10.6% y/y in August, overall inflation accelerated in September to 12.7% y/y. The increase in overall inflation in September was largely due to rising food inflationary pressures.
Monthly short- to medium-term foreign exchange, inflation and interest rate outlook.
Macroeconomic forecast
Long-term annual forecasts of growth, inflation, interest rates and exchange rates.
Tanzania: Blueprint 2007
Economic growth is expected to accelerate to 7.3% in 2007 from 5.9% in 2006, as the country emerges from the retarding effects of the drought that caused a severe energy shortage and underproduction in the agriculture sector.
Mozambique: Blueprint 2007
After declining for four consecutive months to this year’s low of 10.6% y/y in August, overall inflation accelerated in September to 12.7% y/y. The increase in overall inflation in September was largely due to rising food inflationary pressures.
Absa Economic Research
The January Absa/COSAB survey on Trade Conditions is now available, it is indexed in the Trade Conditions section.
The first quarter Economic Perspective and Ekonomiese Perspektief are available, they are indexed in the Economic Perspective section.
The quarterly Residential Property Perspective, it is indexed in the Property Research section
The first quarter Economic Perspective and Ekonomiese Perspektief are available, they are indexed in the Economic Perspective section.
The quarterly Residential Property Perspective, it is indexed in the Property Research section
Economic commentary
Following the European option
The relative merits of the European and American ways of life are often debated, with the European emphasis on social cohesion being contrasted with the greater emphasis on individualism in the USA.
In view of the relative performance of the two economies in recent years, the tendency among commentators has generally been to pronounce the American model superior because of its alleged greater encouragement of entrepreneurship and personal effort. The European reply has been that one should only judge questions such as these over the long run, and that the European model will prove to be more enduring than the American one.
Read more at Sanlam.co.za
The relative merits of the European and American ways of life are often debated, with the European emphasis on social cohesion being contrasted with the greater emphasis on individualism in the USA.
In view of the relative performance of the two economies in recent years, the tendency among commentators has generally been to pronounce the American model superior because of its alleged greater encouragement of entrepreneurship and personal effort. The European reply has been that one should only judge questions such as these over the long run, and that the European model will prove to be more enduring than the American one.
Read more at Sanlam.co.za
FUND MANAGER REPORTS
Stanlib: Stanlib's Weekly Focus (141kb)
Catalyst: Catalyst Monthly Property Report (338kb)
Alphen: Barbarians at the gate or monkeys at the door? (131kb)
RMB: RMB Asset Management Market Summary (73kb)
Alphen: The Bull Run: Stronger for longer? (360kb)
To download report, right-click and 'Save Target As..'
Catalyst: Catalyst Monthly Property Report (338kb)
Alphen: Barbarians at the gate or monkeys at the door? (131kb)
RMB: RMB Asset Management Market Summary (73kb)
Alphen: The Bull Run: Stronger for longer? (360kb)
To download report, right-click and 'Save Target As..'
How much do shares really cost?
When buying shares you don't just pay the price of those shares there are lots of hidden costs.For example, if you bought a 1 000 Standard Bank shares at R70 each with Standard Bank online, you would pay either 0,7% of the value of the shares, or R89, whichever is the greater. On top of that you would pay UST (Uncertificated Securities Tax) and a Strate (share transaction totally electronic) fee
Read full article at Moneyweb.co.za
Read full article at Moneyweb.co.za
Be your own investor…
…with a few clicks of a mouse
The online trading function makes the trading of shares as easy as pie, says Standard Bank. Many potential investors may think twice about buying and selling shares over the internet.
They may be hesitant to accept the notion that, with a few clicks of a mouse, one can start an investment portfolio by buying and selling shares on the JSE. But, if you know your way around internet banking and whiz through your account payments at the end of each month, then online trading is a great way to start investing. Richard Seddon, head of Online at Standard Bank compares internet banking to trading online
Read the full article at MoneyWeb.co.za
The online trading function makes the trading of shares as easy as pie, says Standard Bank. Many potential investors may think twice about buying and selling shares over the internet.
They may be hesitant to accept the notion that, with a few clicks of a mouse, one can start an investment portfolio by buying and selling shares on the JSE. But, if you know your way around internet banking and whiz through your account payments at the end of each month, then online trading is a great way to start investing. Richard Seddon, head of Online at Standard Bank compares internet banking to trading online
Read the full article at MoneyWeb.co.za
Economics vs your shares
Watch these economic variables as they exert a big influence on your shares.
Share prices are sensitive things, reacting to news from far-flung places. Think for example, about how political developments in oil-rich Iran work wonders on Sasol's share price, and how the same news sends shudders down the spines of MTN investors (as MTN is rolling out a network in Iran, which needs to be ready by August).
A company's value, return and share price reflects the perception of its earnings and profit flow. If any news is perceived to affect a company's future profits adversely, its share price falls. Remember how Sasol's share price took a knock on Budget day (February 15) this year, when Finance Minister Trevor Manuel said government was considering levying a tax on the company's windfall profits? In the space of an afternoon, millions were wiped of Sasol's market cap as investors hurried to offload their shares for fear that profits may be affected.
An important component of the constant flow of information that can influence share prices is the change in economic variables both in South Africa and the world's biggest economy, the USA.
Read the full article at MoneyWeb.co.za
Share prices are sensitive things, reacting to news from far-flung places. Think for example, about how political developments in oil-rich Iran work wonders on Sasol's share price, and how the same news sends shudders down the spines of MTN investors (as MTN is rolling out a network in Iran, which needs to be ready by August).
A company's value, return and share price reflects the perception of its earnings and profit flow. If any news is perceived to affect a company's future profits adversely, its share price falls. Remember how Sasol's share price took a knock on Budget day (February 15) this year, when Finance Minister Trevor Manuel said government was considering levying a tax on the company's windfall profits? In the space of an afternoon, millions were wiped of Sasol's market cap as investors hurried to offload their shares for fear that profits may be affected.
An important component of the constant flow of information that can influence share prices is the change in economic variables both in South Africa and the world's biggest economy, the USA.
Read the full article at MoneyWeb.co.za
Buy on the rumour, sell on the fact
How does company news influence returns and share prices?
How does company news influence returns and share prices? Well with everybody looking for an advantage over everybody else, rumours are bound to surface at any given time.You don't have to be plugged into an internet chat room or read the Sunday tabloids to pick up a spicy rumour.
The cliché of the share tip picked up at a dinner party or around a braai is real. It can happen anywhere. Investors need to be on their guard in determining what is rumour and what is fact. Under the disclosure requirements of the JSE, South African listed companies must inform the market as soon as practicable of any news likely to have a material effect on their share price.
Read full article at MoneyWeb.co.za
How does company news influence returns and share prices? Well with everybody looking for an advantage over everybody else, rumours are bound to surface at any given time.You don't have to be plugged into an internet chat room or read the Sunday tabloids to pick up a spicy rumour.
The cliché of the share tip picked up at a dinner party or around a braai is real. It can happen anywhere. Investors need to be on their guard in determining what is rumour and what is fact. Under the disclosure requirements of the JSE, South African listed companies must inform the market as soon as practicable of any news likely to have a material effect on their share price.
Read full article at MoneyWeb.co.za
6 reasons to run from China
As South African investors cast about for offshore opportunities, the lure of China is proving irresistible to many. Little wonder when investment companies have launched a slew of retail products aimed at capitalising on remarkable economic growth in the region.
But storm clouds loom for these investors, warn some experts. If you haven't invested in a fund with China flavour, or a Chindia fund that combines stocks from India along with China, don't rush in now - or possibly even the foreseeable future.
While a correction may be overdue in that region, some say the problems associated with investing could even be terminal.
Read more at MoneyWeb.co.za
But storm clouds loom for these investors, warn some experts. If you haven't invested in a fund with China flavour, or a Chindia fund that combines stocks from India along with China, don't rush in now - or possibly even the foreseeable future.
While a correction may be overdue in that region, some say the problems associated with investing could even be terminal.
Read more at MoneyWeb.co.za
Google to run video ads from BMG, Warner
Google Inc. said on Monday it would expand testing of its much-anticipated video advertising system by working with two major music labels to embed video ads on Web sites that make money running them.
Google said it would distribute advertising alongside videos from Sony BMG Music Entertainment and Warner Music Group over its AdSense online ad system to Web site publishers in a four-week test now underway.
Read more at Reuters.com
Google said it would distribute advertising alongside videos from Sony BMG Music Entertainment and Warner Music Group over its AdSense online ad system to Web site publishers in a four-week test now underway.
Read more at Reuters.com
Mugabe foe sees growing defiance in Zimbabwe
Zimbabwe's main opposition leader said on Monday the fight against President Robert Mugabe had reached a new level, a day after police crushed an opposition rally to prevent anti-government protests from spreading.
Heavily armed riot squads stopped the Movement for Democratic Change (MDC) from holding a court-approved rally in the capital Harare on Sunday, firing teargas and water cannons at stone-throwing protesters and arresting 122 people.
Read more at Reuters South Africa
Heavily armed riot squads stopped the Movement for Democratic Change (MDC) from holding a court-approved rally in the capital Harare on Sunday, firing teargas and water cannons at stone-throwing protesters and arresting 122 people.
Read more at Reuters South Africa
European shares fall as earnings offset M&A
European shares fell from six-year peaks on Tuesday after disappointing updates from Cadbury Schweppes and Scottish & Newcastle offset takeover talk in the music and building materials sectors.
Energy stocks also weighed as oil slid 1.3 percent, pressured by the looming end of winter oil demand in the biggest consumer, the United States.
The FTSEurofirst 300 index of top European shares was 0.2 percent lower at 1,547.36 points by 0930 GMT, retreating from a fresh six-year peak of 1,552.59 points set on Monday.
The benchmark index has gained nearly 2.4 percent since the start of the month, and around 4.5 percent since the start of the year, supported by generally better-than-expected economic data and earnings growth, and by mergers and acquisitions.
Read more at Reuters South Africa
Energy stocks also weighed as oil slid 1.3 percent, pressured by the looming end of winter oil demand in the biggest consumer, the United States.
The FTSEurofirst 300 index of top European shares was 0.2 percent lower at 1,547.36 points by 0930 GMT, retreating from a fresh six-year peak of 1,552.59 points set on Monday.
The benchmark index has gained nearly 2.4 percent since the start of the month, and around 4.5 percent since the start of the year, supported by generally better-than-expected economic data and earnings growth, and by mergers and acquisitions.
Read more at Reuters South Africa
Smokers, drinkers in for a shock
Although sin taxes - alcohol and cigarettes have seen an upward tax increase in the last few years, tax specialists predict that Finance Minister Trevor Manuel will announce a further increase on these items in this year's eagerly awaited Budget.
Read more at FIN24.co.za
Read more at FIN24.co.za
FTSE eases after 6-yr closing high, results in focus
Britain's FTSE 100 index ticked lower in early trade on Tuesday after hitting a new six-year closing high the previous session as investors pocketed gains after a slew of corporate results.
Oil shares suffered as crude prices hovered around $58 a barrel after dropping 1 percent a day earlier.
BP slipped 0.3 percent, while both Royal Dutch Shell and BG Group shed 0.5 percent.
At 0841 GMT, the FTSE 100 was down 7.8 points, or 0.12 percent at 6,436.6, having ended up 0.39 percent at 6.444.4 the previous session, a new six-year closing high. European shares also inched down.
Read more at Reuters South Africa
Oil shares suffered as crude prices hovered around $58 a barrel after dropping 1 percent a day earlier.
BP slipped 0.3 percent, while both Royal Dutch Shell and BG Group shed 0.5 percent.
At 0841 GMT, the FTSE 100 was down 7.8 points, or 0.12 percent at 6,436.6, having ended up 0.39 percent at 6.444.4 the previous session, a new six-year closing high. European shares also inched down.
Read more at Reuters South Africa
2007 – another good year to be passive?
The rewards for passively investing have been hard to beat, says Mike Brown.
The overall JSE performance in 2006 was extremely good, for the fourth year in a row, extending the market's winning streak, which started back in the Easter of 2003. For many investors merely seeking to match the performance of the market - known as beta in the investment industry - it is not necessary to look any further than an index tracking fund. Any investor who bought Satrix 40 in early July 2003, at around R7 per share, would have enjoyed close to 40% per annum return since then, allowing for the reinvestment of the quarterly dividends paid by the Satrix securities. The rewards for passively investing in the index have been hard to beat, setting strong challenges for the active investment school, which seeks, but does not always succeed, in beating the index
Read more at MoneyWeb.co.za
The overall JSE performance in 2006 was extremely good, for the fourth year in a row, extending the market's winning streak, which started back in the Easter of 2003. For many investors merely seeking to match the performance of the market - known as beta in the investment industry - it is not necessary to look any further than an index tracking fund. Any investor who bought Satrix 40 in early July 2003, at around R7 per share, would have enjoyed close to 40% per annum return since then, allowing for the reinvestment of the quarterly dividends paid by the Satrix securities. The rewards for passively investing in the index have been hard to beat, setting strong challenges for the active investment school, which seeks, but does not always succeed, in beating the index
Read more at MoneyWeb.co.za
The Stop-Loss Order - Make Sure You Use It
What with so many facets to look at and brood over when weighing a stock buy, it's easy to forget about the little things. The stop-loss order is one of those little things, but it can also make the world of difference. Just about everybody can benefit from this tool in some way. Read on to find out why.
What Is a Stop-loss Order?It is an order placed with a broker to buy or sell once the stock reaches a certain price. A stop-loss is designed to limit an investor's loss on a security position. Setting a stop-loss order for 10% below the price at which you bought the stock will limit your loss to 10%. For example, let's say you just purchased Microsoft (MSFT) at $50 per share. Right after buying the stock you enter a stop-loss order for $45. This means that if the stock falls below $45, your shares will then be sold at the prevailing market price.
Read the full article at investopedia.com
What Is a Stop-loss Order?It is an order placed with a broker to buy or sell once the stock reaches a certain price. A stop-loss is designed to limit an investor's loss on a security position. Setting a stop-loss order for 10% below the price at which you bought the stock will limit your loss to 10%. For example, let's say you just purchased Microsoft (MSFT) at $50 per share. Right after buying the stock you enter a stop-loss order for $45. This means that if the stock falls below $45, your shares will then be sold at the prevailing market price.
Read the full article at investopedia.com
Offshore investment choice coming
Expect new exchange-traded funds for the US, Japanese and world markets in the first quarter of ’07.
The long-awaited new Itrix products only need Financial Services Board (FSB) approval before they will be launched. The launch is expected to be in the first quarter of this year, and will introduce three funds, respectively focused on the US, Japanese, and world markets, says Itrix spokesperson Niels Penzhorn.
Itrix is an exchange-traded fund company that offers investor exposure to offshore markets. The two existing Itrix products provide exposure to the Euro Stoxx 50 and FTSE 100 stock market indices. These were listed October 2005 and have been a hit with private investors looking for a cheap way to invest offshore.
Read more at MoneyWeb.co.za
The long-awaited new Itrix products only need Financial Services Board (FSB) approval before they will be launched. The launch is expected to be in the first quarter of this year, and will introduce three funds, respectively focused on the US, Japanese, and world markets, says Itrix spokesperson Niels Penzhorn.
Itrix is an exchange-traded fund company that offers investor exposure to offshore markets. The two existing Itrix products provide exposure to the Euro Stoxx 50 and FTSE 100 stock market indices. These were listed October 2005 and have been a hit with private investors looking for a cheap way to invest offshore.
Read more at MoneyWeb.co.za
Making monthly investment payments easier, cheaper
You can purchase Itrix on a monthly basis as part of your investment plan, saving the brokerage fees you would pay on the open market.
Itrix has joined Satrix as an exchange traded fund (ETF) that can be purchased on a monthly basis saving the brokerage fees you would pay on the open market.Itrix is similar to Satrix 40, a basket of the top 40 shares listed on the JSE. Itrix comprises Euro Stoxx, which is an index of the top 50 European company shares, and the FTSE, which tracks the top 100 British shares.
Read more at MoneyWeb.co.za
Itrix has joined Satrix as an exchange traded fund (ETF) that can be purchased on a monthly basis saving the brokerage fees you would pay on the open market.Itrix is similar to Satrix 40, a basket of the top 40 shares listed on the JSE. Itrix comprises Euro Stoxx, which is an index of the top 50 European company shares, and the FTSE, which tracks the top 100 British shares.
Read more at MoneyWeb.co.za
What Is A Small Cap?
The meanings of "big cap" and "small cap" are generally understood by their names: big-cap stocks are shares of larger companies and small-cap stocks are shares of smaller companies. Labels like these, however, are often misleading. If you don't realize how big "small-cap" stocks have become, you'll miss some good investment opportunities.
Small-cap stocks are often cited as good investments due to their low valuations and potential to grow into big-cap stocks, but the definition of small cap has changed over time. What was considered a big-cap stock in 1980 is a small-cap stock today. This article will define the "caps" and provide additional information that will help investors understand terms that are often taken for granted.
Read the full Article at investopedia.com
Small-cap stocks are often cited as good investments due to their low valuations and potential to grow into big-cap stocks, but the definition of small cap has changed over time. What was considered a big-cap stock in 1980 is a small-cap stock today. This article will define the "caps" and provide additional information that will help investors understand terms that are often taken for granted.
Read the full Article at investopedia.com
Satrix changes fee structure
In line with industry trends, Satrix will reduce its initial fee on its investment plan from 0,65 to 0,35%.
In line with industry trends, Satrix will reduce its initial fee on its investment plan from 0,65 to 0,35%. However, the annual management fee will be raised from 0,8 to 1%.
Read more at MoneyWeb.co.za
In line with industry trends, Satrix will reduce its initial fee on its investment plan from 0,65 to 0,35%. However, the annual management fee will be raised from 0,8 to 1%.
Read more at MoneyWeb.co.za
Monday, February 19, 2007
Move Over P/E, Make Way For The PEG
It is common practice for investors to use the price-to-earnings ratio (P/E ratio) to determine if a company is over or undervalued. There are, however, many extreme cases of stocks trading at 10,000 or more times their earnings - these kinds of situations affect the ratio's accuracy for assessing a company. The companies with a high P/E ratio are typically startup companies with little or no revenues; however, a high P/E does not necessarily mean the stock isn't a good buy for the long term.
Read more at investopedia.com
Read more at investopedia.com
Barclays 2006 profits jump 35 pct on BarCap boom
Barclays Plc, Britain's third biggest bank, beat expectations with a 35 percent jump in annual profits on Tuesday, as growth in investment banking and fund management countered a steep rise in bad debts.
Barclays reported record pretax profit of 7.14 billion pounds for 2006, up from 5.28 billion a year earlier and above an average forecast of 7.01 billion based on 18 analysts polled by Reuters Estimates.
Barclays said its bad-debt charge was 2.15 billion pounds last year, up 37 percent from 2005, as UK borrowers struggled to pay back loans at its Barclaycard credit card unit.
Read more at Reuters South Africa
Barclays reported record pretax profit of 7.14 billion pounds for 2006, up from 5.28 billion a year earlier and above an average forecast of 7.01 billion based on 18 analysts polled by Reuters Estimates.
Barclays said its bad-debt charge was 2.15 billion pounds last year, up 37 percent from 2005, as UK borrowers struggled to pay back loans at its Barclaycard credit card unit.
Read more at Reuters South Africa
Africa's ARM H1 EPS up fourfold to 264 cts
South Africa's African Rainbow Minerals Ltd (ARM) said higher metal prices boosted earnings per share fourfold to 264 Sth African cents in the six months to end December from 64 cents a year ago.
The diversified mining group said on Tuesday it had seen higher prices for platinum, nickel, iron ore, manganese and its coal unit, although exploration costs and rising corporate costs had somewhat reduced the earnings.
Read more at Reuters South Africa
The diversified mining group said on Tuesday it had seen higher prices for platinum, nickel, iron ore, manganese and its coal unit, although exploration costs and rising corporate costs had somewhat reduced the earnings.
Read more at Reuters South Africa
Anglo American bids for Mitsui stake in Sesa - paper
Mining giant Anglo American Plc has joined the race to bid for Japan's Mitsui & Co's 51 percent stake in Indian iron ore exporter Sesa Goa Ltd., the Business Standard reported on Tuesday.
Anglo American may emerge as a front runner as it had an existing partnership with Mitsui, Japan's second-biggest trading firm, the newspaper said, quoting unidentified banking sources
Read more at Reuters South Africa
Anglo American may emerge as a front runner as it had an existing partnership with Mitsui, Japan's second-biggest trading firm, the newspaper said, quoting unidentified banking sources
Read more at Reuters South Africa
Rand holds firm vs dollar on budget eve
South Africa's rand remained firm against the dollar on Tuesday morning, with traders forecasting a generally quiet session on the eve of Finance Minister Trevor Manuel's 2007 national budget speech.
The rand was a touch stronger at 7.0920 around 0640 GMT from a close of 7.1150 in New York on Monday.
In his proposals to parliament, Manuel is expected to announce the first ever budget surplus for Africa's biggest economy, a prospect that has helped boost government bonds over the past few days.
Read more at Reuters South Africa
The rand was a touch stronger at 7.0920 around 0640 GMT from a close of 7.1150 in New York on Monday.
In his proposals to parliament, Manuel is expected to announce the first ever budget surplus for Africa's biggest economy, a prospect that has helped boost government bonds over the past few days.
Read more at Reuters South Africa
French nukes 'circling Eskom'
Leading French nuclear companies are circling power utility Eskom, hoping to get in on the construction of the next conventional nuclear plant in the Western Cape, Business Report said on Tuesday.
Industry speculation is that Areva, the company that built South Africa's first and only plant at Koeberg, is prepared to take a stake in the development of the fourth-generation pebble bed modular reactor programme in exchange for the contract to build the country's second conventional nuclear plant.
Read more at FIN24.co.za
Industry speculation is that Areva, the company that built South Africa's first and only plant at Koeberg, is prepared to take a stake in the development of the fourth-generation pebble bed modular reactor programme in exchange for the contract to build the country's second conventional nuclear plant.
Read more at FIN24.co.za
Absa to place R1-2 bln in pref shares
South African biggest retail bank Absa Bank Ltd will place between 1-2 billion rand in preference shares to maintain its Tier I capital base, the bank said on Tuesday.
Absa Bank, a unit of Absa Group Ltd majority owned by Britain's Barclays Plc., said it intended to place the preference shares to selected investors at an effective 74 percent of prime interest rate.
Read more at Reuters South Africa
Absa Bank, a unit of Absa Group Ltd majority owned by Britain's Barclays Plc., said it intended to place the preference shares to selected investors at an effective 74 percent of prime interest rate.
Read more at Reuters South Africa
Absa banks 24% more earnings
South African banking group, Absa, increased annual headline earnings per share by 24% but said earnings growth may slow due to tight monetary conditions and household indebtedness.
Absa, majority-owned by Britain's Barclays Plc, said on Tuesday headline EPS rose to 1 181.8 cents per share while headline earnings increased by 25% to R7.87bn.
Read more at FIN24.co.za
Absa, majority-owned by Britain's Barclays Plc, said on Tuesday headline EPS rose to 1 181.8 cents per share while headline earnings increased by 25% to R7.87bn.
Read more at FIN24.co.za
Cyclical Versus Non-Cyclical Stocks
Investors cannot control the cycles of the economy, but they can adjust their investing practices with its ebbs and flows. Adjusting to economic transitions requires an understanding of how industries are characterized by their relationship to the economy. It's important for you to know the fundamental difference between cyclical and non-cyclical companies so that you can distinguish between sectors that are affected by economic changes and those that are more immune. Here we look at the industries that reside within these categories, and identify where it's best to put your money when the economy starts to decline.
Read the full article at investopedia.com
Read the full article at investopedia.com
Anglo American boosts S.African stock market
South African shares closed slightly higher on Monday, boosted by a rally in Anglo American, the bourse's most heavily weighted stock.
"Today was mainly a resources day, with industrials and financials flat," African Harvest portfolio manager Rajay Ambekar said.
The Johannesburg Top-40 index of blue-chip stocks traded 0.45 percent stronger to 24,029.73 points, while the All-share index gained 0.42 percent to 26,623.23 points.
Diversified mining group Anglo American was among the leading blue chips, up 1.80 percent to 361.73 rand. Rival miner BHP Billiton was 0.43 percent stronger, at 152.35 rand.
Steel manufacturer Mittal Steel, which is due to report results this week, was up 3.37 percent to 120.01 rand. Apart from expectations of solid results, Ambekar said the stock was further boosted by consolidation of the global steel market.
Read more at Reuters South Africa
"Today was mainly a resources day, with industrials and financials flat," African Harvest portfolio manager Rajay Ambekar said.
The Johannesburg Top-40 index of blue-chip stocks traded 0.45 percent stronger to 24,029.73 points, while the All-share index gained 0.42 percent to 26,623.23 points.
Diversified mining group Anglo American was among the leading blue chips, up 1.80 percent to 361.73 rand. Rival miner BHP Billiton was 0.43 percent stronger, at 152.35 rand.
Steel manufacturer Mittal Steel, which is due to report results this week, was up 3.37 percent to 120.01 rand. Apart from expectations of solid results, Ambekar said the stock was further boosted by consolidation of the global steel market.
Read more at Reuters South Africa
Rand firm in quiet trade, eyes budget
South Africa's rand held steady against the dollar on Monday after firming in early trade, supported by gold and positive emerging market sentiment.
Trade was thin due to a market holiday in the United States and amid consolidation ahead of the presentation of South Africa's budget on Wednesday.
The local unit was trading at 7.1240 to the dollar at 1530 GMT, 0.4 percent stronger than Friday's close in New York, but it was off the session's firmest mark of 7.10.
Dealers said the rand was trading fairly strong, with gold near a 7-month high and emerging markets broadly positive.
Read more at Reuters South Africa
Trade was thin due to a market holiday in the United States and amid consolidation ahead of the presentation of South Africa's budget on Wednesday.
The local unit was trading at 7.1240 to the dollar at 1530 GMT, 0.4 percent stronger than Friday's close in New York, but it was off the session's firmest mark of 7.10.
Dealers said the rand was trading fairly strong, with gold near a 7-month high and emerging markets broadly positive.
Read more at Reuters South Africa
Analyze Cash Flow The Easy Way
If you believe in the old adage, "it takes money to make money," then you can grasp the essence of cash flow and what it means to a company. The statement of cash flows reveals how a company spends its money (cash outflows) and where the money comes from (cash inflows).
We know that a company's profitability, as shown by its net income, is an important investment evaluator. It would be nice to be able to think of this net income figure as a quick and easy way to judge a company's overall performance. However, although accrual accounting provides a basis for matching revenues and expenses, this system does not actually reflect the amount the company has received from the profits illustrated in this system. This can be a vital distinction. In this article, we'll explain what the cash flow statement can tell you and show you where to look to find this information.
Read the full article at investopedia.com
We know that a company's profitability, as shown by its net income, is an important investment evaluator. It would be nice to be able to think of this net income figure as a quick and easy way to judge a company's overall performance. However, although accrual accounting provides a basis for matching revenues and expenses, this system does not actually reflect the amount the company has received from the profits illustrated in this system. This can be a vital distinction. In this article, we'll explain what the cash flow statement can tell you and show you where to look to find this information.
Read the full article at investopedia.com
No large-scale tax relief seen
South Africans should not expect large-scale tax relief in this year's Budget.
It is likely the focus will fall, instead, on social spending with, among other things, the planned national pension fund and possibly a basic-income subsidy as the core issues, notwithstanding the fact that room for tax relief for individuals does exist.
Read more at FIN24.co.za
It is likely the focus will fall, instead, on social spending with, among other things, the planned national pension fund and possibly a basic-income subsidy as the core issues, notwithstanding the fact that room for tax relief for individuals does exist.
Read more at FIN24.co.za
Inflation forecast up at 5.2%
Consumer inflation excluding interest on mortgage bonds (CPIX) - the measure used by the South African Reserve Bank (SARB) for its inflation target - is expected to increase to 5.2% in January from December's 5.0%, an I-Net Bridge survey has found.
Three economists expected CPIX to break below 5.0%, while nine of the 14 economists surveyed expected an increase above 5.0%. Forecasts ranged from 4.9% y/y to 5.3% y/y. CPIX was at 4.3% a year ago.
Read more at FIN24.co.za
Three economists expected CPIX to break below 5.0%, while nine of the 14 economists surveyed expected an increase above 5.0%. Forecasts ranged from 4.9% y/y to 5.3% y/y. CPIX was at 4.3% a year ago.
Read more at FIN24.co.za
Share weakness surprising
It may seem anomalous to treat one of SA's biggest industrial groups as a break-up situation, but most of the talk after today's results presentation by sugar, land and aluminium group Tongaat-Hulett centred on how the group's separate parts would be valued by the market after the planned unbundling of 50%-owned Hulett Aluminium.
Read more at FIN24.co.za
Read more at FIN24.co.za
JSE races to record close
The JSE raced to a record close on Monday buoyed by stronger metal prices, Asian markets and news that a large portion of a market heavyweight - AngloGold Ashanti - might be bought by Russia's Polyus.
However, the value and the volumes of trades were soft as the US markets were closed for a public holiday.
The all share index closed at its highest ever up 0.42% at 26 623.230.
The all share index touched a trading high of 26,721.590 earlier during the day.
Read more at FIN24.co.za
However, the value and the volumes of trades were soft as the US markets were closed for a public holiday.
The all share index closed at its highest ever up 0.42% at 26 623.230.
The all share index touched a trading high of 26,721.590 earlier during the day.
Read more at FIN24.co.za
Windfall tax details expected
Less than a year after appointing a team to investigate the potential for windfall taxes on South Africa's liquid fuel industry, Finance Minister Trevor Manuel is expected to announce details on the issue.
In his mini-budget speech last October, Finance Minister Trevor Manuel said he had received a comprehensive report from the team and that he would address the issue at the next full Budget
Read more at FIN24.co.za
In his mini-budget speech last October, Finance Minister Trevor Manuel said he had received a comprehensive report from the team and that he would address the issue at the next full Budget
Read more at FIN24.co.za
FTSE at 6-year high, boosted by miners, Sainsbury
Britain's FTSE 100 index rose to a six-year high by midday on Monday, led by mining stocks on a bullish outlook for copper, talk of a buyback from Anglo American and bid speculation around Sainsbury.
Anglo American surged 2.6 percent after the Financial Times reported the miner was expected to announce this week a further share buy-back plan that would return up to $4 billion to shareholders on the back of the boom in metal prices. JPMorgan lifted its price target for the stock.
Other miners were also buoyed by expectations that copper prices were set to rise as China replenished its stocks next week after the Chinese New Year holidays.
Lonmin climbed 2 percent, Kazakhmys gained 1.9 percent, BHP Billiton added 0.7 percent and Rio Tinto put on 1 percent.
Read more at Reuters South Africa
Anglo American surged 2.6 percent after the Financial Times reported the miner was expected to announce this week a further share buy-back plan that would return up to $4 billion to shareholders on the back of the boom in metal prices. JPMorgan lifted its price target for the stock.
Other miners were also buoyed by expectations that copper prices were set to rise as China replenished its stocks next week after the Chinese New Year holidays.
Lonmin climbed 2 percent, Kazakhmys gained 1.9 percent, BHP Billiton added 0.7 percent and Rio Tinto put on 1 percent.
Read more at Reuters South Africa
Gold probes 7-month high as dollar weakens
Gold surged to a seven-month high on Monday because of investor buying as the dollar weakened, and analysts expect the precious metal to push higher over coming days and weeks.
By 1130 GMT, spot gold was quoted at $670.90/$671.70 an ounce versus $669.00/669.70 an ounce late on Friday in New York. Earlier it hit an intraday peak of $673.20, the highest since July 17 2006 when it traded at a $676 high.
Read more at Reuters South Africa
By 1130 GMT, spot gold was quoted at $670.90/$671.70 an ounce versus $669.00/669.70 an ounce late on Friday in New York. Earlier it hit an intraday peak of $673.20, the highest since July 17 2006 when it traded at a $676 high.
Read more at Reuters South Africa
AngloGold Ashanti shares jump on Polyus report
Shares in the world's third biggest gold producer AngloGold Ashanti Ltd surged on Monday after a newspaper report that Russia's top gold miner Polyus Gold might buy a stake in Anglogold.
AngloGold shares jumped as much as 5.7 percent in early trade before paring gains to be up 3.97 percent at 352.99 rand by 0813 GMT.
Read more at Reuters South Africa
AngloGold shares jumped as much as 5.7 percent in early trade before paring gains to be up 3.97 percent at 352.99 rand by 0813 GMT.
Read more at Reuters South Africa
Oil dips, but Nigeria, refinery fires check fall
Oil futures slipped on Monday in modest profit taking from a surge late last week on jitters over Nigerian output, but losses were checked by refinery outages and signs that OPEC's supply cuts were helping drain stockpiles.
Front-month U.S. crude for March delivery was down 26 cents at $59.13 a barrel on the Globex electronic trading platform, after falling to as low as $58.87. London Brent crude was trading down 10 cents at $58.85 a barrel.
Read more at Reuters South Africa
Front-month U.S. crude for March delivery was down 26 cents at $59.13 a barrel on the Globex electronic trading platform, after falling to as low as $58.87. London Brent crude was trading down 10 cents at $58.85 a barrel.
Read more at Reuters South Africa
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