THURSDAY, 8.30AM
THE Johannesburg Stock Exchange celebrated the biggest trading day in its history yesterday, when just under R2,8 billion in shares were traded. Market speculation pointed to London-based SBC Warburg as the source, acting as principal in buying shares from an unknown South African institution for sale to an overseas company. Warburg refused to comment on the deal.
Other factors were positive sentiment towards the mining houses De Beers and Gencor, which both made important announcements yesterday, and gains by financial institutions which took the financial index up 44 points to 9 770>
The all share index ended the day positive, despite a four point loss on the all gold index and the industrial index ending the day unchanged. Record numbers of million-share or higher deals were reported, covering such firms as the steel company Iscor, the information technology company DiData, and the mining houses Gencor and Consolidated Mining..
The rand weakened however, with dealers nervous as the July 1 cut-off date for lifting exchange controls approaches. The rand is expected to continue weakening until that date, after which it is expected to stabilise or improve.
Ironically, on Tuesday, the Johannesburg Stock Exchange experienced its biggest one-day fall in 10 weeks on Tuesday, with the all share index closing 79,4 points (1,1%) down at 7 192,1 points, mainly as a result of nervousness ahead of Friday’s futures close-out. Yesterday, much of the activity was in index deals in the Alsi-40 as future dealers reversed their selling ahead of Friday.