/ 10 September 1997

Pessimism hits markets

WEDNESDAY, 11.00AM:

PESSIMISM about the softening SA economy and gloomy sentiment on international markets kept investors away from the Johannesburg Stock Exchange on Tuesday, giving industrial shares a sharp knock.

The thin volumes and bullion’s doldrums dragged the gold index to its lowest level in two months, losing 12 points to close at 981. Industrial shares, meanwhile lost 84 points on the day to close at 8 963. Tuesday’s good economic data released by the Reserve Bank, coupled with good corporate results failed to inspire the market, and industrials slid 130 points in the morning. Good producer inflation figures helped the market regain half the loss, before gloomy sentiment pushed it back down again. The all share index, meanwhile, lost 47 points to close at 7 346.

In currency markets, the rand slavishly tracked the fortunes of the dollar, ending the day off its earlier lows, but still weaker at R4,6990/7020 to the dollar.