TUESDAY, 6.00PM
INDUSTRIAL shreas on the Johannesburg Stock Exchange had fallen from their morning’s highs by noon on Tuesday after volatile futures-related trades, and the markets surprisingly ignored the excellent August producer inflation figures released in the morning. Gold shares, meanwhile, remained under pressure from the softer bullion price.
At 4pm the industrial index was up 9,1 points at 8 852,6, off its high of 8 876,3. The gold index ended the day 22,3 points lower at 1 043,2, while the financial index jumped 61,4 points to 10 189,0 leaving the all share index 5,6 points higher at 7 302,7.
Bonds ended the day firmer in quiet trade, but dealers said the better-than-expected August producer inflation rate had been discounted before its release, and a lead was required from either the money market or the Reserve Bank for the R150 yield to break below 13,68%. At 4.00pm the benchmark government long bond, the R150, was quoted at a 13,715% yield — 2,5 basis points stronger than the previous close, while the longer-dated R153 bond was three basis points better at a 13,82% yield. Just before the 11am release of the producer inflation report, the R150 bond yield was 13,72%, while the R153 was 13,83%.
TUESDAY, 10.00AM
SHARES on the Johannesburg Stock Exchange managed to end Monday higher despite a slow start to the week.
Turnover was low at R416-million, but there was enough institutional demand to push the major indices up. The industrial index managed to gain 65,5 points to 8 843,5, while financials added 99 points to close at 10 128. The Gencor-GFSA merger announced at the weekend was good for the gold board, which picked up eight points to 1 065. The all share index ended the day up 59,5 points at 7 297.
August producer inflation figures due out on Tuesday will dominate the day’s trade.