Steaming ahead…

Excellent news regarding the Mzansi-accounts for the lower income clients led to the admiration of banking stocks (+2.42%) on the bourse yesterday.

According to Gerbrand Smit, analyst at the Efficient Group, Absa (+3.19%) and RMB Holdings (+3.41%) were the favourites. Even the gold (+1.15%) index supported the positive close on the JSE Securities Exchange (+0.19%).

Promises by Sasol (-2.27%) that it would comply with international safety standards at the end of the 2006 financial year could not convince investors, the price tumbled. Local currency trading was quiet yesterday as traders are awaiting the decision from the MPC’s meeting today – we expect no change in the monetary stance.

The rand recovered slightly against the dollar and euro, it gained 3 cents and 2 cents respectively. The dollar has gained 6.41% against the euro during this year, almost the same rate at which dollar denominated bullion (-6.10%) fell.

US trade data will be released later today, the US equity markets are gloomy on the number and closed on average 1.02% down yesterday. The European markets were mixed yesterday; the DAX (+0.12%) outperforming the rest.

The Nikkei 225 (+0.02%) is currently in the black with low trading volumes while investors are relaxing and celebrating the lunar New Year.

In China the Hang Seng is closed for this celebration. We expect the equity market’s motor to idle until the MPC meeting’s result is announced.