FRIDAY, 11.00AM
INDUSTRIAL shares continued to chase new highs on Thursday as widespread expectations of an imminent interst rates cut led to positive sentiment, backed by strong institutional demand.
Support this week by the SA Chamber of Business for a rate cut and a warning by Amic on continued high interest rates boosted general expectations in an imminent cut.
Sentiment was so positive, in fact, that the markets shrugged off the rand’s further fall to R4,70 against the dollar, and hailed its recovery to around R4,68 at the close.
Industrials continued their flight to new highs with a 67-point jump to yet a new record high of 9 314. The gold index took heart from the falling rand to weather the depressed bullion price, adding 10 points to the index to close at 967. Financials slowed their recent run, but still gained 32 points to 10 487. Together, they pushed the all share index up 68 points to 7 614.