Unfortunate…

After another unfortunate day the JSE Securities Exchange (-1.31%) closed deep in the red, albeit off its low reached during the day.

Stefan van Rooyen form the Efficient Group says that investors seems to be optimistic about MTN (+1.40%) and Pick ‘n Pay (+1.32%), while the other stock on the top 40 index had a disastrous day.

The SARB clearly indicated that they want a weaker rand at the end of the year with cutting interest rates last week. The rand held its ground by gaining 1 cent against the dollar, and losing only 4 cents against the euro yesterday.

At the height of rand weakness in 2002 the gold (+0.47%) price stood at R107 000 a kilogram, while it currently is at R84 000 a kilogram.

The swelling oil (-1.43%) stockpiles in the US, the biggest energy consumer, combined with increased production from OPEC, resulted in the oil price steadying to a more realistic price. US equity markets were marginally up as investors await the PPI data scheduled for today. Analysts expect an increase of 0.2%.

In Europe the FTSE 100 (-1.31%) had its sharpest fall since August 6, with 96 of its 102 members declining yesterday. Asian markets are pulling back their earlier losses, the Nikkei 225 (+1.03%) and Hang Seng (+1.03%) working in tandem. Given the slight positive note of the Dow and the strength in the east we expect a slightly positive day.