Wednesday February 18, 06:18 AM
South African Markets - Factors to watch on Feb 18
JOHANNESBURG, Feb 18 (Reuters) - The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect South African markets on Wednesday.
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GLOBAL MARKETS
Deepening economic gloom and fears about the health of the global finance sector pushed Asian shares to their lowest level this month on Wednesday, prompting investors to move to low-risk assets such as regional bonds.
The MSCI index of Asia-Pacific (002790.KS - news) stocks outside Japan fell 1.1 percent by 0245 GMT, after earlier touching its lowest level since Jan. 26. The index is headed for its sixth losing session out of the past seven, bringing its losses so far this year to about 11 percent.
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SOUTH AFRICAN MARKETS
South Africa's rand plunged over 2 percent and stocks, led by financials, fell to a two-week low on Tuesday amid renewed worries about the global economy, but gold miners rose as risk aversion buoyed bullion.
The Johannesburg Top-40 index of blue-chip stocks dropped 1.64 percent to 18,038.70 points, its lowest closing level since Feb. 3, while the All-share index fell 1.66 percent to 20,044.49 points. At 1531 GMT, the rand traded at 10.2590 to the dollar after earlier falling to 10.28, its weakest level since Feb. 2, according to Reuters data.
For Tuesday's South African financial markets closing report, double click on
MTN
Africa's biggest mobile company by subscribers MTN said on Wednesday it will delay its plan to sell 5-6 percent of its shares to black investors to meet South Africa's quotas on black ownership.
The company said the Black Economic Empowerment (BEE) deal will be delayed because of severe constraints in the current financial markets.
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ANGLOGOLD ASHANTI (Brussels: ANG.BR - news)
AngloGold Ashanti has agreed to sell its Tau Lekoa mine in South Africa to local rival Simmer & Jack for 600 million rand plus a royalty of 3 percent on sales, the company said.
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INVESTEC
Investec Bank (Australia), a unit of Investec , has priced A$200 million ($127.7 million) of five-year bonds backed by an Australian government guarantee at 130 basis points over swap, a market source said on Wednesday.
The offer, which was Investec (LSE: INVP.L - news) 's second issue under the guarantee introduced in November, was jointly led by Commonwealth Bank of Australia (Munich: 882695 - news) and UBS (Virt-X: UBSN.VX - news) .
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SHOPRITE
Africa's biggest supermarket chain Shoprite Holdings Ltd expects to report a 35-45 percent jump in earnings per share and headline EPS.
TRUWORTHS
Clothing retailer Truworths International Ltd expects to report a 12-17 percent increase in first-half earnings per share as new stores and higher prices boost sales.
GOLD
Gold prices steadied on Wednesday, taking a breather after hitting a new seven-month high the previous day when investors fled to safe-haven investments on growing concerns over the global economy.
Spot gold was trading at $967.35 an ounce, down $1 from the notional New York close after scaling its highest since July 22 of $973.20 an ounce on Tuesday.
Gold futures for April delivery on COMEX were up $1.1 at $968.6 an ounce, after surging to a seven-month high of $974.90 on Tuesday.
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WALL STREET
U.S. stocks slid within striking distance of the November bear-market low on Tuesday, as grim manufacturing data signaled the recession is worsening and warnings on risks facing European banks underscored the continuing toll of the financial crisis.
The Dow Jones industrial average fell 297.81 points, or 3.79 percent, to 7,552.60. The Standard & Poor's 500 Index gave up 37.67 points, or 4.56 percent, at 789.17. The Nasdaq Composite Index lost 63.70 points, or 4.15 percent, to 1,470.66.
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EMERGING MARKETS
For the top emerging markets news, double click on
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Some of the main stories out of the South African press:
BUSINESS DAY
- Task team proposes to curb 'cheap imports'.
- Safe-haven gold sparkles as bourses keep sinking.
- King report on corporate governance takes dim view of directors' shares.
BUSINESS REPORT
- Sourth Africa's lending freeze could trigger a recession.
- Absa flies gold to UK as investor demand surges.
- Industrial Development Corporation revives 90 limping companies.
THE STAR
- ANC President Jacob Zuma prosecutors tired of delays.
(Reporting by Gugulakhe Lourie) (For full Reuters Africa coverage and to have your say on the top issues, visit: http://africa.reuters.com) Keywords: MARKETS SAFRICA FACTORS/
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