/ 21 October 1997

Financials boost overall index

TUESDAY, 6.00PM

SHARES on the Johannesburg Stock Exchange, especially financials, leapt ahead on Tuesday, buoyed by rejuvenated overseas markets and positive domestic news. Only the falling bullion price cast a blot on the day, dragging gold shares down.

At the close the all gold index had slipped 9,1 points to 1 009,6 as the bullion price slipped under pressure from a strong dollar, but the industrial index had jumped 97,5 points to 8 948,9. The all share index was driven up 90,1 points to 7384,4, pushed by the financial index, which rocketed 236 points, or 2,3%, to 10 498,5.

Bonds ended stronger on Tuesday as a lower money market shortage raised expectations that more interest rate cuts will be applied in the near future. At 4pm the benchmark government R150 long bond was quoted at a 13,665% yield from 13,73% on Monday, while the longer-dated R153 bond was at a 13,775% yield from 13,84% before. The Eskom E168 bond was trading at a 13,95% yield from 14,03%. The range on the R150 was 13,64% to 13,745%, after the R150 yield declined last Thursday to 13,63% — its lowest level since February last year.

The rand, meanwhile, stagnated on Tuesday. At 4pm the local unit was quoted at a mid-rate of R4,6955 to the dollar from Monday’s close of R4,6940. The rand traded between bids of R4,6920 and R4,7000 during the day.