Wednesday October 21, 07:37 AM
South African Markets - Factors to watch on Oct 21
JOHANNESBURG, Oct 21 (Reuters) - The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect South African markets on Wednesday.
EVENTS
PRETORIA - SARB monetary policy committee starts two-day meeting on interest rates.
PRETORIA - South African Grain Information Service (SAGIS) releases data on weekly maize deliveries. 1000 GMT
PRETORIA - South African Grain Information Service (SAGIS) monthly bulletin with latest grain stocks and exports data. 1000GMT.
GLOBAL MARKETS
Profit taking in the technology sector weighed on Asian stocks on Wednesday, though they stuck close to a 15-month high, while some stability in the U.S. dollar and a rise in inventories pushed oil below $79 a barrel.
A recovery in demand for IT-related products has been unmistakable and so far earnings for the sector have held up, but dealers were prone to trim bets ahead of a heavy load of Chinese economic data on Thursday and with the MSCI IT index for Asia Pacific ex-Japan up 87 percent so far this year.
SOUTH AFRICAN MARKETS
South Africa's rand fell as much as 1.7 percent against the dollar on Tuesday, mainly influenced by the greenback's broad-based gains against major currencies, while local stocks ended flat after spending most of the session under pressure.
Some last-minute buying and stronger platinum stocks helped lift the local bourse a bit, with the Top-40 index closing up 0.17 percent at 23,801.72 points, while the broader All share index added 0.07 percent to 26,444.03 points.
PICK N' PAY
Africa's second-biggest grocer Pick 'n' Pay Holdings Ltd reported an 11.1 percent rise in first-half headline earnings per share.
BHB BILLITON
The world's largest miner has suspended opencast mining operations at its Khutala colliery in South Africa after a worker was killed in an accident, it said on Wednesday.
The company said in its first-quarter production report it expects its stricken Olympic Dam uranium and copper mine to resume full production between January and March next year.
It said output of iron ore, one of its biggest commodities, rose 1 percent from a year earlier.
GOLD
Cash gold steadied above $1,050 per ounce on Wednesday after snapping back a day earlier from two days of gains on a recovery in the dollar, with investors looking to corporate earnings for a clue to direction.
Strong earnings from U.S. companies had helped raise investors' risk tolerance, causing a shift in their focus from the safe-haven dollar and U.S. Treasuries to stocks and commodities, including gold.
WALL STREET
U.S. stocks retreated from 12-month highs on Tuesday as disappointing housing and inflation data prompted investors to book recent gains despite strong results from bellwethers including Apple (NASDAQ: AAPL - news) and Caterpillar (NYSE: CAT - news) .
New construction of U.S. homes rose less than expected in September and U.S. producer prices posted an unexpected decline, both pointing to an anemic economic recovery.
EMERGING MARKETS
For the top emerging markets news, double click on
SOUTH AFRICA
South Africa is still negotiating to buy eight Airbus A400M military transport planes despite delays and a cost increase that have raised doubts over the purchase, defence officials said on Tuesday.
ZIMBABWE
A fresh outbreak of cholera has killed five people from more than 100 recorded cases, state media reported on Tuesday, raising fears of a repeat of last year's epidemic that claimed more than 4,000 lives.
- - - -
Some of the main stories out of the South African press:
BUSINESS DAY
- Government policy head Joel Netshitenzhe steps aside
- Mutual breaks ranks on end of S.Africa recession
- State may double issuance of bonds
BUSINESS REPORT
- Construction confidence plunges
- Minorities resist Old Mutual (LSE: OML.L - news) 's M&F bid
THE STAR
- Blame game over Santana (SANTANA.SN - news) debacle
- Judge calls for probe into third Selebi DVD leak
(Reporting by Muchena Zigomo) (For full Reuters Africa coverage and to have your say on the top issues, visit: http://af.reuters.com/) Keywords: MARKETS SAFRICA FACTORS/
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