/ 1 October 1997

Gold holds gains, industrials fall

WEDNESDAY, 6.30PM

GOLD shares on the Johannesburg Stock Exchange held most of their gains on Wednesday, but even a last-minute run on indistrial shares failed to drag the index into positive territory.

At the close the all gold index had gained 5%, or 49 points, to 1 074,4, but the industrial index had lost 23,7 points to 8 652,2. The all share index ended 6,8 points better at 7 130,2.

Overall trade was described by dealers as good for the first day of the month, with R817-million worth of stock traded. 150 issues advanced, while 173 issues declined and 140 issues ended unchanged.

Bonds ended Wednesday with strong gains after bullish moves on the US gold market and the investment grade rating by Duff & Phelps on rand-denominated debt. At 4:30pm the benchmark long government bond, the R150, was quoted 11 points stronger at a 13,83% yield and the longer-dated R153 bond was 11,5 points better at a 13,935% yield. The Eskom E168 bond was last at 14,13% from 14,23%.

The rand, meanwhile, ended Wednesday’s official trading at its weakest level of the day after the dollar bounced higher against the deutschemark. At 4pm the local unit was quoted at R4,6690 to the dollar from Tuesday’s close of R4,6640. It traded between bids of R4,6530 and R4,6700 during the day.

WEDNESDAY, 11.30AM

BULLION’s surge past the critical $330 barrier precipitated a 6% leap in the Johannesburg Stock Exchange’s gold index on Tuesday in an otherwise quiet day’s trade.

A strong silver price and general positive sentiment buoyed bullion and local markets were quick to respond after the drubbing taken by gold recently. The all gold index had risen 56,1 points to 1 025, its first foray above the 1 000 mark in a month. Dealers were calling it a recovery from an oversold position, however, rather than the start of a bull run.

The industrial index gained moderately, adding 38 points to close at8 675,9, pushing the all share index up 39 points to 7 123,4 on a below-average turnover of R811-million.