Deluge expected

(26.7.04) Locally the JSE closed above the 10 000 level Friday ending a rollercoaster week on the back of the volatile currency.

The Efficient Group The currency weakened against the majors losing 2.6% against the greenback, as the latter strengthened against the euro and yen.

Neither the equity market nor the currency showed any reaction to the announcement of the extension of Mboweni’s contract as governor of the SARB. Bond yields weakened as the currency dropped 14 points.

Local market should be flat in expectation of the deluge of data this week.

Commodities were mixed with gold and platinum dropping in line with the dollar strengthening, but oil remained stubborn, gaining 0.7%. In Europe only the FTSE (UK) closed higher - but only just. The US also closed weaker with the Nasdaq dropping 2.1%.

The Far East is also weaker so far this morning, both losing 0.5% so far. We expect that the local markets should trade weaker today on the back of weaker international markets but the currency may give support if it weakens further