July 02, 2008 at 6:00 am by Tom Lydon
South Africa’s economy and exchange traded fund (ETF) are facing some new hurdles.
Africa’s biggest steel maker, ArcelorMittal South Africa Ltd, is fighting a record penalty after antitrust authorities found that the company may be guilty of excessive pricing last year, reports Carli Lourens for Bloomberg.
Consumers are going to take the hit, as long and flat products will gain by an average $63 a metric ton.
The South African consumer is feeling the pinch as Toyota’s Motor Corp. in South Africa is expecting a 16% sales decline. Higher interest rates, as well as rising food and fuel costs are curbing consumer spending, reports Vernon Wessels for Bloomberg.
South Africa’s statistics office says it plans to scale back the weighting of food in the consumer price index. With a lower food weighting, the inflation rate might get curbed, reports Nasreen Seria for Bloomberg. The office wants to overhaul the index in an effort to reflect the changes in consumer spending patterns over the last five years.
ArcelorMittal South Africa accounts for 2.8% of holdings in the iShares MSCI South Africa Index (EZA).
Tags | Material ETFs, Metals, Retail & Consumer, South Africa, Steel
