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(AFX UK Focus) 2008-11-03 06:35
South African Markets - Factors to watch on Nov 3
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JOHANNESBURG, Nov 3 (Reuters) - The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect South African markets on Monday.

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GLOBAL MARKETS


Asian stocks edged up for a fifth straight day on Monday on hopes policy efforts so far to dampen the impact of the financial crisis would ultimately take hold, though data still painted an ugly picture of the global economy.
Investors were also cautiously shopping for bargains after shares and commodity prices globally in October posted their biggest decline ever on fears of a deep recession in the world economy.
Expectations of more interest rate cuts this week from Australia, Britain and the euro zone following last week's reductions from China, India, Japan and the United States among others has at the least slowed the panicked selling of risky assets that dominated most of October.
The MSCI index of stocks in the Asia-Pacific region outside Japan rose 4.2 percent, up for a fifth consecutive session after having dropped 24.6 percent in October for its biggest monthly decline in the gauge's 20-year history.
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SOUTH AFRICAN MARKETS


South Africa's rand turned firmer against the dollar in late trade and stocks edged higher, reversing early losses as Wall Street turned positive and MTN jumped on strong third-quarter subscriber numbers.
The rand
gained 0.45 percent to 19,080.13 points, completing four day of gains since sinking to its lowest level in almost three years on Monday.
For Friday's South African financial markets closing report, double click on

SOUTH AFRICAN POLITICS


A breakaway faction of South Africa's ruling ANC decided on Saturday to form a new party to contest elections next year, a move that could dramatically reshape the country's post-apartheid political landscape.
The rebellion by members loyal to former South African President Thabo Mbeki, ousted by the ANC in September, has thrown the traditionally united party into disarray and stoked fears of rising instability in Africa's richest economy.
The new party will be launched in South Africa's Free State province on Dec. 16, Mbhazima Shilowa, a Mbeki ally and former provincial premier, told several thousand delegates at a convention in Johannesburg.
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SOUTH AFRICAN ECONOMY


Investec releases October purchasing manager index. 0900 GMT.

BHP BILLITON


European regulators could threaten to stop the proposed takeover of Rio Tinto by BHP Billiton because of the dominance the pair have over the world's iron ore supply, Britain's Sunday Times newspaper reported.
The report said the warning will come in a long-awaited "statement of objections" from Brussels, which will be crucial in deciding whether the second-largest corporate takeover ever can go ahead.
For stories on BHP Billiton/Rio Tinto double click on


REINET, BAT
Investment holding firm Reinet distributes 90 percent of its interest in British American Tobacco plc to shareholders and holders of Reinet depositary receipts.
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SAPPI


South Africa's Sappi Ltd won permission from EU competition authorities on Friday to buy the loss-making graphic paper business of Finland's M-real Oyj.
The sale, for 750 million euros ($958.3 million) including the struggling unit's debt, is a big first step towards a long-awaited European paper industry consolidation. Sappi plans to fund part of the deal through a 450 million euro rights offer.
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PROTECH


Protech reported a 31 percent rise in first-half headline EPS on Monday and said revenue increased 78 percent.
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GOLD


Gold gained more than 1 percent on Monday, having posted its biggest monthly decline in a quarter century in October, as safe-haven buying resurfaced after the euro firmed against the U.S. dollar and oil reversed losses.
But investors may be careful about taking large positions ahead of another round of interest rate cuts this week by the major's major central banks and Tuesday's U.S. presidential election, which could set the tone for the dollar and gold.
Spot gold was trading at $731.10 an ounce, up $8.05 from New York's notional close on Friday, when it dropped more than 2 percent after a strong dollar and recession fears prompted investors to shift to less volatile assets.
For the latest precious metals report, double click on

WALL STREET


U.S. stocks ended one of their worst months on record, but signs of further thawing in credit markets lifted battered shares on Friday.
Hammered by worries over the extent of the damage the credit crunch has inflicted on the global economy, the Dow Jones industrial average logged its biggest monthly decline in a decade, while the S&P 500 had its worst month since the October 1987 market crash.
The Dow Jones industrial average gained 144.32 points, or 1.57 percent, to 9,325.01. The Standard & Poor's 500 Index rose 14.66 points, or 1.54 percent, to 968.75. The Nasdaq Composite Index climbed 22.43 points, or 1.32 percent, to 1,720.95.
For the New York stock market report, double click on

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

  • Fighting talk from ANC President Jacob Zuma as new party shapes up
  • Brait still pays dividend but profit drops
  • Inflation risks could override rate optimism
  • Zambia's Rupiah Banda hastily sworn in as rival cries foul

    BUSINESS REPORT

  • Diamond sector hits deadlock
  • ANC and black business representatives plan BEE review

    THE STAR

  • Zuma blasts 'wealthy snakes' as new party gets green light


    (Reporting by Rebecca Harrison) (For full Reuters Africa coverage and to have your say on the top issues, visit: http://africa.reuters.com) ($1=9.892 Rand) Keywords: MARKETS SAFRICA FACTORS/

    (rebecca.harrison@thomsonreuters.com; +27 11 775 3160; Reuters Messaging: rebecca.harrison.reuters.com@reuters.net)

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