Johannesburg, Apr 30 (I-Net Bridge) - Bonds were flat with a weaker bias
in lacklustre trade at midday on Monday ahead of the release of trade
data for March by Customs and Excise.
Bonds were marginally firmer at the start of the session
having gained some succour from better than expected broad money supply
and credit demand data. But, with no fresh factors to drive the market
and trade very quiet after a long weekend and with tomorrow also being a
public holiday, any gains were shortlived.
Because of its volatility, the monthly trade data rarely moves
the market so conditions are expected to remain subdued.
At 12:00, the benchmark R157 bond was at 6.465% from its
previous close of 6.460%. The R207 was bid at 7.575% and offered at
7.555% from a previous close of 7.560% and the R186 was offered at
8.190% from its close of 8.165%.
The rand was bid at 7.7524 against the dollar from its previous close of 7.7340.
"Bonds seem to have firmed slightly on the PSCE and M3 data.
But we're expecting a very quiet session, with a lot of players having
taken the day off to enjoy a five-day weekend and the rand not really
going anywhere at the moment," a bond trader said.
Credit extension to the private sector (PSCE) grew at a much
better than expected rate of 9.16% year on year (y/y) in March from
7.92% in February, the South African Reserve Bank (SARB) said on Monday.
The rate of growth of South Africa's broad M3 money supply
measure rose by 6.65% y/y in March from 5.89% y/y in February.
The rate of growth in PSCE was expected to have registered
8.53% y/y, according to a survey by I-Net Bridge and M3 was expected to
have increased at 6.4% y/y.
SA's foreign trade balance with its non-Southern African
Customs Union (non-SACU) trading partners is expected to have clocked in
a deficit of R5.0bn in March from a R7.5bn deficit in
February, according to leading economists surveyed by I-Net Bridge.
Forecasts among six economists ranged from a R6.0bn deficit to a R2.4bn surplus.
Foreigners were net buyers of R2.33bn of South African
bonds including repo transactions on Thursday after net sales of
R181.423m of local bonds on Wednesday, data released by the JSE
shows.
Nominal cumulative volume was R50.44bn on Thursday from R56.037bn on Wednesday.
Foreigners were net buyers of R2.33bn of South African
bonds excluding repo transactions on Thursday after net sales of
R200.450m of local bonds on Wednesday.
For the year to date foreigners have been net buyers of
R35.031bn of local bonds, excluding repo transactions. In 2011
they were net buyers of R47.359bn worth of local bonds, excluding
repo transactions.
In the year to date foreigners have been net buyers of R31.528bn of local bonds including repo transactions. In 2011 they bought
R37.501bn of local bonds.