Good morning

(15/7/04) Local equities were in the black for most of the day, but were pulled down by the strong currency later in the afternoon.

Nico Kelder, economist at the Efficient Group reports that the All Share shed 74 points and closed at 10099. The currency flirted with the R/$6 level as it traded at R/$6.01.

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 higher with gold gaining 0.68% (at $405.13), oil gained 1.51% (at $37.74), and platinum was up by 0.86% (at $818.5). European markets closed flat yesterday while the US traded slightly lower (0.38%) after receiving worse than expected retail sales figures.

The Far East is trading lower this morning - the Hang Seng dropped 0.22% so far. We expect that local equities should continue to trade lower on the back of the strong currency, and weaker US markets.