/ 11 July 1997

JSE forgets gold’s gloom and bounces back

FRIDAY, 10.30AM

SHARES on the Johannesburg Stock Exchange leapt ahead on Thursday, using a modest recovery in the gold price as an excuse for a major rally.

Industrials started the day on a gloomy note influenced by gold’s poor fortunes, but soon picked up. By close of trade, the all share index was up 0,5% or 38,70 points to 7 337,90. Industrials were up 39,20 to 8 798,50, while gold shares rose more than conditions might have suggested, the index rising nearly 5% to 947,40, hinting that bullion’s earlier losses had led to an oversold state on the gold board.

The rand also managed to strengthen slightly against the dollar, gaining a cent to close at R4,5495.