THURSDAY, 6.30PM
SHARES on the Johannesburg Stock Exchange ended weaker on Thursday after a volatile day’s trade started with large overnight sell orders and then continued to suffer as futures traders undertook basket trading.
At the close the financial index was up 3,7 points at 9 937,3 and the industrial index was 33,2 points lower at 8 009,0. The all gold index slid 18,8 points to 812,0 and the all share index fell 28,3 points to 6 512,6. The high and lows on the financial index. Value traded was R1,014-billion compared to Wednesday’s R907,89-million.
Dealers said the near-dated industrial futures contract had been up some 70 points before the spot market opened. As the overnight sell orders were executed so futures followed them down to bottom at only 30 points up, but as selling pressures eased, so futures roared back and zoomed higher to top out at 127 points up at 10.15am, before reversing direction again. The near-dated industrial futures contract was last up 44 points.
Wall Street lost 157 points or 2,1% overnight while the losses on most Latin American markets were far larger. The Brazilian stock market plummeted 889 points or 10,2% and the Mexican stock market shed 192,34 points or 4,2%. Hong Kong by contrast closed up 112,87 points or 1,1% after it initially fell 171 points.
The bullion price was trading at $308,25 an ounce from the morning London fix of $308,35 and the New York Wednesday close of $307,35.
Bonds, meanwhile, held on to early gains on Thursday in subdued trade, but offshore players showed a reluctance to hold on to SA gilts, dealers said. At 4pm the benchmark long government bond, the R150, was quoted at a 14,55% yield — eight basis points stronger than Wednesday’s close. The longer-dated R153 bond was seven points firmer at a 14,63% yield.
The rand traded softer on Thursday on late dollar buying out of London, dealers said. At 4pm the local unit was quoted at a mid-rate of R4,8350 to the dollar from Wednesday’s close of R4,8295. It had traded between bids of R4,8200 and R4,8360 during the day.
THURSDAY, 8.30AM
SHARES on the Johannesburg Stock Exchange took another dive on Wednesday, following Wall Street’s sharp decline. The Wall Street fall followed an announcement by Federal Reserve chairman Alan Greenspan not to raise interest rates.
More anxiety is expected on Wall Street on Thursday when Greenspan appears before Congress to give his verdict on the likely effects of Asia’s economic turmoil on the US — and this in turn is likely to lead to jitters on the JSE.
On Wednesday the all share index went down 118,6 points to close at 6 540,9. The financial index dropped 181,6 points to 9 933,6 and the industrial index lost 137,6 points. The gold price in London, $308,15, was the lowest in 12 years due to rumours (strongly denied) that the Deutsche Bundesbank planns to sell off gold.