TUESDAY, 6.00PM:
THE Johannesburg Stock Exchange was very bullish on Tuesday morning, but a turn-around began later in the day with mixed sentiments over Finance Minister Trevor Manuel’s new Medium Term Expenditure Framework, released today. (see our top news story)
There was some worry over the down-graded growth prediction of 2% for the current financial year, from previous expectations of 2,5%. But this was balanced by optimism over indications of strong fiscal discipline over the next three years.
Industrial shares, Monday’s winners, were Tuesday’s losers, falling 16 points to 7 741. The financial index climbed 52 points to 10 095, and the all gold index, yesterday’s loser, rose 6 points to 714. The all share index finished 17 points up at 6 342.
Bonds ended firmer, with the R150 up 15 basis points at a 14,07% yield, while the R153 climbed 13,5 points to 14,165%. The rand was a R4,8585 against the dollar from R4,8615 on Monday. Gold was at $295,00 an ounce, but dealers remained worried that the price would crash through the $290 level.
MONDAY, 5.30PM:
The all gold index on the Johannesburg Stock Exchange slid even further today after Friday’s rout, losing 18 points to fall to 709. The financial index fell too, shedding 48 points to 10 043. But industrials saved the day however, with the index climbing 45 points to 7 757, to ensure that the all share index was weaker by only one point at 6 325.
The R150 long government bond was up two basis points to a 14,23% yield while the R153 gained three points to 14,30%.
The rand lost some ground to the dollar, at R4,8610 from Friday’s close of R4,8545. Gold was trading at R294,35.
Meanwhile, the JSE reports that foreigners bought shares worth R155,66-million last week. The net purchases compared favourably to sales of R81,6-million over the same week in 1996. Non-residents have bought R24,265-billion worth of shares so far this year, sharply up on the R4,759-million spent over the same period last year.