Morning report (28.6.04)

Local equity markets closed higher on Friday despite a stronger currency during local trading hours.

Nico Kelder reports that resource stocks gained (1.25%) but financial were down (-0.29%), especially banks (-0.59%).

The currency weakened slightly after local markets closed. Platinum and oil declined by 0.74% and 0.93% respectively while gold remained almost unchanged. European markets closed weaker while the US was mixed; the Dow dropped 0.7% and the Nasdaq gained 0.5%.

Markets in the Far East are also trading mixed with the Nikkei gaining 0.5% so far while the Hang Seng is 0.24% weaker. Wednesday will be the key day for local and international markets.

Locally the money supply data will be released, while internationally the hand-over of Iraq and interest rate decisions in the US may play important roles. We expect local equities to trade higher today while bonds will wait for the money supply data on Wednesday.