JOHANNESBURG STOCK EXCHANGE ASSURES WILL PREVENT RECURRENCE OF PROGRAMMING ERROR

The South African Reserve Bank (SARB) says it has been re-assured by the Johannesburg Stock Exchange (JSE) that steps are in place to prevent the recurrence of a programming error which resulted in incorrect data being reported.

The SARB said in a statement here that the JSE had corrected the error, which resulted in incorrect data being reported for the trading of equities by non-residents for the period May 31 to July 20, this year.

The central bank said data for the net purchases of South African bonds by non-residents was not affected by the programming error. Net purchases totalled 7.0 billion Rand (about 490 million US dollars) in June and for July to date, they have amounted to 8.6 billion Rand.

“The JSE’s announcement means that incorrect data (combined bond and equity net purchases by non-residents) was quoted in the July 21 statement of the Monetary Policy Committee (MPC). The incorrect data did not have any bearing on the MPC’s decisions,” said the bank.

Last Thursday, the SARB announced its decision to keep its benchmark repo rate unchanged at 7,0 per cent. The bank also announced its growth forecast for 2016.

The revised data for equity transactions by non-residents, as published by the JSE on Sunday is, May 2016 (net sales of R16.1 billion); June 2016 (net sales of R20.3 billion) and July 2016 to date (net purchases of R50 million).

The incorrect data had recorded net purchases by non-residents as R6.4 billion (May 2016); R63.8 billion (June); and R27.9 billion (July to date).

Source: NAM NEWS NETWORK