/ 20 August 1997

JSE rises after Wall Street rebound

TUESDAY, 6.00PM

SHARES on the Johannesburg Stock Exchange moved slightly higher in thin trade on Tuesday as Wall Street bounced back from Friday’s precipitous fall, with the only downside to the day the rand’s further losses against the dollar.

At the close the all gold index had edged up 0,9 points to 1 017,6 on the back of a marginal increase in the bullion price, the industrial index had gained 37,4 points to 9 086,4, and the all share index was driven 35,9 points higher to 7 397,2.

The rand lost almost two cents against the dollar before recovering somewhat during the session, with concern about the increasing strength of the US currency keeping some foreign and local investors out of equities. The rand’s losses were ascribed to the dollar’s strength against the deutschmark. At 4pm the rand stood at R4,6965 to the dollar from a Monday close of R4,6810.

BUSINESS BRIEFS

‘IBA’ FOR ZIM? CONSULTANTS engaged by the Zimbabwean government to look at the best way of liberalising the country’s airwaves have recommended that a regulatory body be set up to control broadcasting services. Information, Posts and Telecommunications Minister Chen Chimutengwende told a conference the consultants’ report is being seriously considered with a view to adopting some of its recommendations. He said the ministry is busy putting in place infrastructure to facilitate the transition from a broadcasting monopoly to a liberalised environment. “Since liberalisation will allow more players to come into the sector, it is imperative that a regulatory mechanism is put in place as a matter of urgency before the actual licensing takes place,” he said.

TRANSNET DIRECTOR ‘BUGGED MANAGERS’ SUSPENDED Transnet executive director Joe Ndhlela allegedly established a security unit which bugged senior managers’ phones and searched their offices, sources in Transnet have claimed. The unauthorised surveillance is believed to be part of the grounds for his suspension. It is speculated thjat Ndhlela, who started at Transnet as industrial relations manager, intended to use information gathered by the unit to advance his position in the company.

AFRICAN BANK GETS A ‘B’ BLACK-owned and managed African Bank has been awarded a short-term “B” credit rating by CA-Ratings. The internationally comparable rating shows the bank now has a satisfactory capacity to repay depositors, after being almost bankrupt two years ago.

E-CAPE DEVELOPMENT PLAN TRADE and Industry Minister Alec Erwin will release details on Wednesday of the long-awaited multi-billion rand development plan for the Eastern Cape. He said the plan includes a R1,5-billion road through the Wild Coast and a new port.