Pref share price drivers

[jdupreez]

Can anyone explain what drives the price down - the inters rate is stable yet the price ids dropping.

[SimonPB]

supply and demand, no market makers so over weight sellers can send them lower ..

[jdupreez]

Thanks Simon - I still think my pension money is safe :-)

[Brommie]

The SARB is under increasing pressure to increase interest rates. Consumer confidence indicators are currently very low and with credit expansion below GDP growth it might be influencing the share price negatively.

[SimonPB]

who is pressuring SARB to increase rates ?? I don't see it at all ..

[Brommie]

Inflation. We are out of the set target range. Current account deficit. If SA interest rates are to increase, overseas investors will get a better return to keep money in our banks. This might allow much needed capital inflows into SA, reducing the current account deficit. It will also lead to more Rand demand (strengthening the Rand) that will bring inflation down.