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IMF working paper-Commodity Prices and Exchange Rate Volatility: Lessons from South Africa's Capital Account Liberalization
June 29, 2012--Summary: We examine the relationship between South African Rand and gold price volatility using monthly data for the period 1980-2010. Our main findings is that prior to capital account liberalization the causality runs from South African Rand to gold price volatility but the causality runs the other way around for the post-liberalization period.
These findings suggest that gold price volatility plays a key role in explaining both the excessive exchange rate volatility and current disproportionate share of speculative (short-run) inflows that South Africa has been coping with since the opening up of its capital account.
JSE closes week with good gains
June 29, 2012--The JSE had a positive trading day, tracking international markets, which rallied after a eurozone deal that would help struggling banks was struck.
The rand was trading quite stronger at R8.18 today from R8.42 on Thursday and although the rand “has been our saving grace”‚ it was holding trading gains back‚ said Drikus Combrinck‚ portfolio manager at PSG Konsult.
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Source: FIN24
JSE slides to three-week low
June 28, 2012--The JSE slid to a three-week closing low on Thursday, while THE platinum spot price dipped below US$1,400 an ounce level for first time in six months, piling pressure on the platinum sector.
Aquarius Platinum tumbled almost 10% to an all-time-closing low.
The euro area debt concerns dominated investor sentiment‚ as European leaders gathered for the two-day summit to tackle regions’ crises.
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Source: FIN24
Europe still dictates rand direction
June 28, 2012--The rand was range bound in late trade on Thursday as European leaders kicked off a two-day European Union 19 summit to discuss the future of the eurozone.
“The rand is being dominated by Europe‚ with volatility caused by uncertainty over what would happen if Germany refused to help the eurozone out of its woes‚” a local trader said.
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Source: FIN24
Volatile JSE closes weaker
June 27, 2012--The JSE ended weaker on Wednesday, lagging main global stock markets, as a selloff in mining shares weighed on the all-share index.
The platinum spot price bounced off the near-month lows‚ hurting the platinum stocks‚ although they ended the session off their worst levels.
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Source: FIN24
Rand firmer on export and bond flows
June 27, 2012--The rand was stronger in late trade on Wednesday with foreign investors preferring emerging market currencies to the euro, due to doubts mounting over Germany's commitment to saving the euro.
Large exporters were fairly active in the local market with subsequent foreign currency payment inflows and continued inflows into the local bond market also leading the currency stronger.
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Source: FIN24
JSE ends flat in cautious trade
June 26, 2012--The JSE ended relatively flat on Tuesday in cautious trade ahead of the two-day European Union summit later this week.
Shares in SA’s biggest retail banking group Absa ended more than 8% lower after the group issued a voluntary profit warning indicating that its interim headline earnings were expected to be up to 10% lower than last year.
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Source: FIN24
Rand range bound in afternoon trade
June 26, 2012--The rand traded in a very narrow range today with a slight recovery seen during late trade on Tuesday, with investors awaiting news from the EU summit on Thursday and Friday this week and local traders focussing on the ANC policy conference that started today.
“The rand was trading in a narrow range of between 8.42 and 8.48 today with a weaker bias. We are expecting R8.60 in the near future‚” said Brigid Taylor‚ head of flow sales at Nedbank.
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Source: FIN24
SA stocks wobbly, gold price helps
June 25, 2012--South African stocks slipped in and out of positive territory in early trade on Monday, as nagging concerns about Europe's debt crisis and global growth hit equities
and other riskier assets around the globe.
Brewer SABMiller [JSE:SAB] and base metal miner Assore [JSE:ASR] are among the notable decliners, with SABMiller dropping 1.3% and Assore giving up 1.25%.
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Source: FIN24
Bonds a tad softer in muted trade
June 25, 2012--South African bonds were a touch softer in muted midday trade on Monday as they followed the weaker rand.
"There is not much happening as we wait for the European Union summit at the end of the week‚” a local trader said.
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Source: FIN24
