MONDAY, 5.15PM:
THE Johannesburg Stock Exchange showed modest gains on Monday after ending badly on Friday. The all share index finished 54 points stronger at 6428, the financial index closed 96 points up at 9819 and the industrial index rose 78 points to 7976. The gold index ended 6 points better at 783.
The rand meanwhile remained steady: at 4.00 pm it was almost unchanged against the dollar at R4,8525, from Friday’s close of R4,8520. Gold was last at $302,35 an ounce, after a London morning fix of $303.
The benchmark long government bond, the R150, was quoted at a 14,545% yield, up 10,5 basis points from Friday’s close. The R153 bond was ten points stronger at a 14,62% yield. MONDAY, 12.15PM:
The record weakness in the rand on Friday R4,8740 against the dollar will probably only be reflected in the money market on Wednesday, according to economists.
On Monday morning, money market rates were unchanged, despite a rise in the daily money market shortage above the R9-billion level on Friday and Saturday.
The Reserve Bank quoted the market shortage on Saturday at R9,363-billion from R9,654-billion on Friday – considerably above R8,374-billion on Thursday.
The Reserve Bank attributed the sharp R1,28-billion jump in the shortage at the end of last week to a mismatch in government spending and forex outflows related to foreign sales of bonds.
Total net sales of South African gilts last week were R1,67-billion; foreigners were heavy net sellers on Wednesday and Thursday. for the week ended last Friday to R1,67bn.