Johannesburg – The South African bond market was softer in afternoon trade on Wednesday on the back of a weaker rand.
“We were already weak in the morning before the rand softened in the afternoon‚” a local bond trader said.
At 15:35‚ the benchmark R157 bond was trading at 5.490% from 5.360% at the previous close. The R207 was bid at 6.540% and offered at 6.535% from Tuesday’s close of 6.370%‚ and the R186 was trading at 7.420% from 7.280% at Tuesday’s close.
The rand was bid at R8.2951 after reaching a best level of R8.1357 in the morning and a worst level of R8.3592 in the afternoon from Tuesday’s close of R8.1711.
The rand weakened after labour unrest spread from Lonmin to other mines.
Anglo American Platinum said on Wednesday it had suspended its Rustenburg platinum operations with immediate effect to protect the safety and security of its employees from outside intimidation.
CEO Chris Griffith said: “Our employees are not on strike. However‚ in light of the current volatile situation in the Rustenburg area... Anglo American Platinum has decided to suspend its operations in the Rustenburg area.”
Angloplats chairman Cynthia Carroll said:“ ...We are in touch with the authorities at the highest level to identify how we can work together with our tripartite partners - government and the recognised labour unions - to achieve a swift and peaceful resolution to these illegal actions.”
Foreigners purchased a net R2.998bn of South African bonds including repo transactions on Tuesday after net sales of R3.211bn of local bonds on Monday‚ data released by the JSE shows.
Nominal cumulative volume was R201.813bn on Tuesday from R72.979bn on Monday.
Foreigners were net buyers of R2.562bn of local bonds excluding repo transactions on Tuesday after net sales of R3.259bn of local bonds on Monday.
For the year to date foreigners have been net buyers of R73.541bn 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 R73.880bn of local bonds including repo transactions. In 2011 they bought R37.501bn worth of local bonds.