WEDNESDAY, 1.00PM
THE Johannesburg Stock Exchange was saved from a dull day on Tuesday by a wave of last-minute buying by institutional investors.
The day closed with three of the four major indices firmer: industrials climbed 46 points to 8 856, while financials gained 24,5 points to 10 007, its first foray into five digits in three weeks. The gold index lost 33,5 points to close at 1 025 as bullion threatened to fall below $330/oz. The all share index closed 25 points higher at 7 262.
Tuesday’s late buying characterised Wednesday’s opening, with positive sentiment on international markets buoying local sentiment, while the bullion price began reversing Tuesd ay’s losses.
At noon the all gold index had gained 10,8 points to 1 036,1, the industrial index had climbed 29,1 points to 8 885,4 and the all share index was driven 40,9 points higher to 7 303 by the financial index, which bounced 79,4 points to 10 086.
The shine returned to gold shares as bullion made modest gains due to short covering from European and Far Eastern jewellery manufacturers and ahead of the New York options expiry on Friday. Bullion was last quoted $332,15 from a London morning fix of $331,90/oz.
Bonds were little changed in thin trade at midday on Wednesday, as the market consolidated after recent sharp gains, dealers said. At midday the benchmark long government bond, the R150, was quoted unchanged at a 13,77% yield, while the longer-dated R153 bond was 1,5 basis points easier at a 13,915% yield. The Eskom E168 bond was one basis points stronger at 14,06%.
Meanwhile, the rand traded weaker against the on Wednesday morning as the US unit firmed up against the deutschemark. At noon the local currency was quoted at R4,6715 to the dollar from Tuesday’s close of R4,6645. The rand traded between bids of R4,6660 and R4,6720 during the morning.