South African Markets – Factors to watch on June 8

June 9, 2010 By Leave a Comment

June 8 (Reuters) – The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect South African markets on Tuesday.

Basic Materials

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GLOBAL MARKETS

Hong Kong and Shanghai stocks edged higher on Tuesday after a sell-off in the previous session, but trading in large caps was muted as investors awaited economic cues from China. [ID:nTOE657032]

SOUTH AFRICAN MARKETS

South African stocks fell for the third straight session on Monday, tracking global equities as worries over the U.S. economy unnerved investors, while the rand steadied but remained vulnerable to risk aversion. [.J]

GOLD MINERS

Australia’s Newcrest Mining (NCM.AX) said it has finished due diligence on rival Lihir Gold (LGL.AX) and expects to complete an $8 billion acquisition to created the world’s fourth-largest listed gold miner by September. [ID:nSGE657007]

HARMONY GOLD MINING (HARJ.J)

The gold miner said on Tuesday it plans to terminate the listing of its U.S. depository receipts on the Nasdaq exchange. [ID:nWEA5204]

MAIZE DATA

South African Grain Information Service releases data on weekly maize imports and exports at 1000 GMT.

BOND AUCTION

South Africa auctions 1.5 billion rand of 2021 bond ZAR208= and 600 million of 2031 issues in weekly auction at 0900 GMT.

GOLD XAU=

Gold edged down on Tuesday, after rising 2 percent to just below a lifetime high the previous day as investors sought a safe haven from volatile currencies, falling stock markets and euro zone credit fears.

Spot gold XAU= was at $1,237.75 an ounce by 0526 GMT, down 30 cents from New York’s notioncal close on Monday. [GOL/]

WALL STREET

U.S. stocks fell on Monday, taking the S&P 500 to its lowest close in seven months, as industrials and technology shares fell and investors remained cautious following last week’s discouraging payrolls data.

The Dow Jones industrial average .DJI fell 1.16 percent to 9,816.49. The Nasdaq Composite Index .IXIC tumbled 2.04 percent to 2,173.90.

EMERGING MARKETS

For the top emerging markets news, double click on [nTOPEMRG]

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Some of the main stories out of the South African press:

BUSINESS DAY

- “Hands-on” Dames likely to be Eskom CEO

- Junior doctors may strike again over pay, conditions

- Capitec denies takeover talk as HSBC boss visits

- Metropolitan seeks African expansion

BUSINESS REPORT

- Hogan “had power” to sack chief

- SA economy fails to impress this quarter

THE STAR

- Soccer organisers did not implement Fifa’s critical measures

(Reporting by David Dolan)

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Australian shares flat, Rio up in London

March 30, 2010 By Leave a Comment

The Australian share market has finished broadly flat, as gains in mining stocks were offset by weakness in health stocks and the major supermarkets.

The All Ordinaries index closed a mere 2 points higher at 4,907, and the ASX 200 ended dead flat at 4,897.

Metal prices rose at the end of last week, as the EU’s tentative deal on a Greek bailout helped boost confidence on financial markets, including the commodities markets.

Panoramic Resources had the best of the mining gains, rising 10 cents to $2.39.

BHP Billiton was up 0.25 per cent, and Rio Tinto gained 7 cents to close at $78.39.

Rio Tinto has advanced more strongly in London, despite jail terms of between seven and 14 years handed to its four executives on trial in a Chinese court for bribery and stealing commercial secrets.

Australian, Stern Hu, received a 10-year jail sentence.

However, Rio Tinto’s share price had gained 1.6 per cent during the first half hour of trade in London. Other mining stocks were also gaining strongly on rising commodity prices.

Back to the Australian market, and the gold miners advanced after strong gains in the precious metal’s price in New York on Friday.

Eldorado gained more than 2.5 per cent to $13.34, and Newcrest rose more than 1 per cent to $33.30.

Spot gold was fetching about $US1,107 an ounce at around 5:00pm (AEDT).

The major supermarkets lost ground: Woolworths closed down about 1 per cent at $28.38; and Wesfarmers, which owns the Coles supermarket group, lost more than 0.5 per cent to $31.45.

Telstra ended the day flat at $3.06 cents, despite announcing a management shake-up.

However, iiNet surged almost 7 per cent after announcing a $40 million takeover of rival internet service provider Netspace.

iiNet says the takeover will give it an extra 70,000 broadband customers, taking its total broadband subscriptions to more than half a million.

West Texas crude oil was worth $US80.44 a barrel at around 5:00pm, while Tapis was fetching a touch over $US82.

The Australian dollar has recovered some of its dip at the end of last week, to be fetching 90.88 US cents.

On the cross rates it was at 84.13 Japanese yen, 67.63 euro cents, 60.86 British pence, and $NZ1.284.

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Liberals warn against raising Goldfields’ royalty rates

March 30, 2010 By Leave a Comment

The Kalgoorlie branch of the Liberal Party is sending a stern warning to the Western Australian Government on mining royalties.

The Government is considering raising royalty rates as part of the budget process.

But Kalgoorlie’s Liberal Party secretary, Matt Eggleston, says higher royalties should not be imposed on Goldfields’ gold and nickel miners.

“Any increase in mining royalties would be at the direct expense of jobs,” he said.

“It would damage these mining communities.”

Mr Eggleston says while anomalies in the royalties system need to be fixed, Goldfields’ companies are much smaller than iron ore producers in the Pilbara and cannot afford higher taxes.

The Mines and Petroleum Minister, Norman Moore, told the ABC earlier this month he did not want to see gold miners affected by royalty increases.

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Gold miners unhappy about tax talk

March 17, 2010 By Leave a Comment

Western Australia’s emerging gold companies say the state government’s plan to raise royalty taxes will be a big blow to future exploration.

WA gold producers already pay about two hundred million dollars in royalties each year.

The royalty system is currently under review and is set to be overhauled in the May budget.

The changes would mostly affect small companies, which constitute 20 per cent of the industry and do not operate under state agreements.

Bruce MacFadzean from Catalpa Resources says the changes unfairly target companies such as his.

“I think this approach of having a crack at a smaller part of the resource industry is probably not quite reasonable,” he said.

“We’re in the last month of a $100 million project construction and all of a sudden we’re here facing a battle of an increased cost to the operation.”

Ian Gordon from Ramelius Resources agrees.

“And it’s really the small end of town that are taking the biggest risks in terms of gold mining in Western Australia.”

The gold miners want to meet the Premier to discuss the changes.

For his part, Premier Colin Barnett says any increase in gold royalty rates would be modest, if the rates are increased at all.

” No-one likes to pay more and I can understand the gold industry feeling that, the iron ore industry, but we are not proposing radical changes to royalties but we are looking at the royalties system, we need to.

“This may be a period of increasing prosperity but the demands on the West Australian Government are immense.”

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