{"id":10018,"date":"2012-04-18T04:20:33","date_gmt":"2012-04-18T02:20:33","guid":{"rendered":"http:\/\/www.myza.co.za\/04\/update-1-bond-index-move-could-steer-up-to-9-billion-to-s-africa\/"},"modified":"2012-04-18T04:20:33","modified_gmt":"2012-04-18T02:20:33","slug":"update-1-bond-index-move-could-steer-up-to-9-billion-to-s-africa","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/update-1-bond-index-move-could-steer-up-to-9-billion-to-s-africa\/","title":{"rendered":"UPDATE 1-Bond index move could steer up to $9 billion to S.Africa"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p><span><\/span><\/p>\n<p>By Xola Potelwa<\/p>\n<p><span><\/span><\/p>\n<p><span class=\"articleLocation\">JOHANNESBURG, April 17<\/span> (Reuters) &#8211; The prospect of billions<br \/>\nof dollars in new investment money pouring into South Africa<br \/>\nsent the country&#8217;s bonds sharply higher on Tuesday after<br \/>\ninvestment bank Citi said they were on track to be included in<br \/>\nits main global bond index.<\/p>\n<p><span><\/span><\/p>\n<p>Such a move would broaden South Africa&#8217;s international<br \/>\ninvestor base and trigger huge amounts of purchases &#8211; as much as<br \/>\n$9 billion by one estimate &#8211; from overseas pension funds and<br \/>\nothers that track bond indexes.<\/p>\n<p><span><\/span><\/p>\n<p>Yields on the benchmark 2026 issue fell sharply as<br \/>\ninvestors bought the bond and the rand currency erased<br \/>\nlosses to trade up 1.5 percent against the dollar.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;Around $1.5 to $2 trillion is believed to track the index,&#8221;<br \/>\nsaid Peter Attard Montalto, an emerging markets economist at<br \/>\nNomura International in London.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;South Africa would have a weight of around 0.43 percent and<br \/>\nthat would mean there would need to be around $9 billion of<br \/>\nSouth African government bond-buying by index trackers. That<br \/>\nequates to 8.9 percent of the total outstanding &#8211; huge.&#8221;<\/p>\n<p><span><\/span><\/p>\n<p>Citi said South Africa was currently in a three-month<br \/>\n&#8220;monitoring period&#8221; to make sure it continued to meet index<br \/>\nentry requirements to its World Government Bond Index (WGBI).<br \/>\nThese are based on issue size, ease of entry and credit rating,<br \/>\nall of which were passed in April.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;If South Africa continues to meet all WGBI criteria with<br \/>\nthe May and June 2012 profiles, it will become the first African<br \/>\ngovernment bond market to be included,&#8221; it said in a statement.<br \/>\n\u00a0 <span class=\"label\"><strong>Continued&#8230;<\/strong><\/span><\/p>\n<p><span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Xola Potelwa JOHANNESBURG, April 17 (Reuters) &#8211; The prospect of billions of dollars in new investment money pouring into South Africa sent the country&#8217;s bonds sharply higher on Tuesday after investment bank Citi said they were on track to be included in its main global bond index. Such a move would broaden South Africa&#8217;s [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-10018","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/10018","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=10018"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/10018\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=10018"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=10018"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=10018"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}