Going Down (13.7.04)

Local equities were pulled down by the strong currency which gained 0.62% against the dollar.

All sectors, except financials, experienced declines, reports Nico Kelder, economist at the Efficient Group.

The currency flirted with the R/$6 level as it traded at R/$6.03. Continuing its strong run, it gained 0.6% against all the majors. Bonds strengthened on the back of the stronger currency as inflation expectations are reduced.

Commodities traded mixed with gold down about 0.2% (at $406.75), oil down by 0.85%, and platinum up by 0.86%. European markets closed about 0.7% lower yesterday while the US traded slightly stronger (0.24%).

The Far East is trading lower this morning - the Hang Seng dropped 1.3% so far. We expect that local equities should continue to trade lower on the back of the strong currency, and weaker world markets.