Morning report (7 June)

Local equities ended the week on a disappointing note, dropping 0.4%, with the largest losses being recorded in the platinum and construction sectors.

Nico Kelder, economist at the Efficient Group says that the roller coasting foreign exchange market went trough a lull with the rand strengthening against the dollar but losing against the euro while the dollar weakened against the euro.

Bonds closed flat, little happened to affect trading. A weaker dollar helped gold and platinum but oil traded lower by 2%. European and US markets closed the week stronger with the DAX (Germany), CAC (France) making the largest gains.

The Far East has taken this very positively and is trading more than 3% higher so far this morning. We expect local equities to follow the positive international sentiment and trade higher.