Market update

It was an interesting day on the markets with a weaker Rand providing something of a "saving grace" for the JSE with more downside on the cards.

Rand buggers out
The Rand buggered out to above R10 to the US dollar following an Appeals Court decision overturning a previous decision to drop corruption charges against ANC president Jacob Zuma.

Political turmoil is one thing that South Africa can ill afford and currency traders have knocked down the Rand sharply.

Weaker international markets
With the Nikkei closed, we waited to Europe and the US for direction. European markets were weaker and the US has continued to trade down with the Dow dropping another 125 points.

I wouldn't be surprised to see this slump continue over the rest of the week and over the rest of January - I keep asking myself - WHY SHOULD THINGS GO UP?!

Commodities slump
Oil has slumped sharply after a short spike. South African petrochemical giant Sasol was also on the receiving end of an earning downgrade from Credit Suisse which may weigh on the market tomorrow if the Rand remains little changed.

Gold and Platinum have both dropped US$35 in US trade and this could weigh on the SA market tomorrow.

Trading opportunity?
It is not a share I've followed regularly but something I have picked up in the last few days.

Vox Telecom was a share which took a bruising in the Dealstream saga in late 2008. Over the last few days the Lereko Metier Capital Growth Fund have been buying up blocks of shares in the business at just under 80c.

Prior to the Dealstream disclosures Vox was trading above R2 and had a good reputation in the market - might be worth a punt for those who like smaller tech stocks.