FRIDAY, 6.00PM
DESPITE dire prophesies of worldwide market crashes on the 10th anniversary of the 1987 Wall Street crash, the Johannesburg Stock Exchange did not crash on Friday, although all indices ended the day sharply loqwer.
At the close the all gold index had dumped 23 points to 1 020,3, the industrial index had ditched 95,6 points to 8 789,4, driving the all share index down 78,3 points to 7 257. The financial index underwent a sharp correction as well, as it plunged 122,2 points to 10 144,9, after having gained around 2% earlier in the week.
Although most traders scoffed at the prphets of doom, Friday’s trade on the JSE was very thin, indicating a measure of caution in the market.
Bonds ended weaker on Friday on the back of softer US bonds, following higher-than-expected US September housing starts, industrial production and capacity utilisation, dealers said. Rumours of an imminent cut in bank lending rates also boosted bond yileds on Thursday, and these gains were reversed on Friday.
At 4.23pm the benchmark long government bond, the R150, was quoted at a 13,695% yield from 13,66% on Thursday, while the longer-dated R153 bond was at a 13,815% yield from 13,77% before. The range on the R150 had been 13,66% to 13,75%, after the R150 yield declined on Thursday to 13,63% — its lowest level since February last year.
The weekly Treasury Bill tender saw little movement as the three-month rate declined to 14,69% from 14,72% last week, while the six-month rate eased to 14,04% from 14,06%.
Money market rates remained flat on Friday morning as the market shortage edged towards the R4-billion level. The Reserve Bank indicated the money market shortage on Thursday to be R311-million lower at R4,008-billion from Wednesday’s R4,319-billion.
Three-month NCD rates fell to a 15,40/10% band from a 15,45/20% range, while six-month dated paper also fell to 15,35/10% from 15,40/20%. Nine-month NCDs were flat in a 15,30/10% range, while 12-month NCDs were unmoved at 15,30/00%. The three-month BA rate was steady at 14,95/75%.
Meanwhile, the rand lost a cent against the dollar on Friday. At 4pm the local unit was quoted at a midrate of R4,6980 to the dollar from Thursday’s close of R4,6865/dlr. The rand traded between bids of R4,6870 and R4,6995 during the day.