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
Tuesday, February 20, 2007
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
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