MONDAY, 5.30PM
INDUSTRIAL shares on the Johannesburg Stock Exchange followed the lead set by Wall Street on Friday, but gold stocks were saved further punishment by a 4$ rise in the bullion price.
The all gold index had climbed 19,7 points by the close, breaking back into four-figure territory to close at 1 016,3. Industrials, however, followed world markets downwards, dumping 44 points to close at 9 239,4, to drag the all share index down 16,1 points to 7 583,1.
In thin trade, the rand ended the day slightly firmer after a volatile day. By the close, the local currency was trading around the R4,668 per dollar mark, up about a cent from Friday’s close of R4,6765. The rand traded through the day in a range between R4,6580 and R4,6720 to the dollar.
Bonds, meanwhile, started the day nervously, trading weaker in early trade, but recovering after the Tpkyo bond market showed a recovery and New York opened stronger. The benchmark government R150 long bond was trading six points firmer in late trade at a yield of 14,20%, having spent the day between 14,20% and 14,30%.
MONDAY, 11.00AM
HEAVY losses on Wall Street on Friday are likely to take their toll on local financial markets today.
The Dow Jones industrial average fell 157 points on Friday to close at 8 031, its ninth-biggest ever one-day decline. The Dow has lost 268 points from Thursday’s high of 8 299, a 3,2% fall. At the same time, the dollar took a dive of its recent surge, losing five pfennigs against the deutschmark.
The Johannesburg Stock Exchange’s industrial index began to feel the fall-out from Wall Street late on Friday, and ended the day 30,8 points down at 9 283.
The sudden turn on Wall Street was triggered by fears that the US’s steamrolling economy will lead to a tightening in monetary policy. Meanwhile, there have been hints of an imminent rise in German interest rates, while the pound fell late last week after hints from the Bank of England that no new rates hike is likely in the short term.
Only gold benefited from the currency worries, climbing beyond the early $320 mark and helping the JSE gold index gain 29 points to 996, to keep overall index losses down to 15,2 points to see the all share index closing at 7 599.