/ 27 August 1997

Markets tread water

WEDNESDAY, 6.00PM:

SHARES on the Johannesburg Stock Exchange had a mixed day on Wednesday, with industrials boosted by selective buying while gold shares sat in the doldrums of minimal demand.

Overall trade was thin, with institutions buying selectively in a search for bargains setting a solid foundation for the day’s trade, but most traders were keeping a wary eye on jumpy foreign markets and waiting for Thursday’s release of the July consumer price index and credit extension and money supply growth figures.

At the close the all gold index had dropped 9,2 points to 1 023,7, but the industrial index had gained 16,5 points to 9 105,2, pushing the all share index up 12,6 points to 7 391,2.

Gold shares tracked the bullion price lower in thin trade, with gold last quoted at $324,55 from a London afternoon fix of $324,75/oz.

The rand, meanwhile, gave up its early gains against the dollar to end marginally softer as the US unit recovered to above the DM1,80 level on international currency markets, dealers said.

At 4.15pm the local unit was quoted at R4,6940 to the dollar — its worst level for the day — from R4,6905 at the previous close.

Bonds ended steady on Wednesday after trad-ing in a tight range in a quiet market ahead of Thursday’s major data releases, dealers said.

At 4.30pm the government R150 long bond was steady at a yield of 14,22%, while the longer dated R153 bond was one point weaker at a 14,35% yield. The R150 traded in a range between 14,245% and 14,205%.