TUESDAY, 11.00PM:
SHARES on the Johannesburg Stock Exchange failed to find direction in thin trade on Tuesday, ending the day little changed.
At the close the all gold index had dropped 5,8 points to 676,5, and the industrial index had slipped 2,7 points to 7 435,6. However, the all share index ended 2,8 points better at 6 158,9 as the financial index managed to gain 12,8 points at 9 983,8 towards the end of the session. Turnover was posted at R724,42-million.
International markets failed to provide direction. Tokyo’s Nikkei Stock Average rose 3,44%, while Hong Kong’s Hang Seng index fell 2%. The US’s Dow Jones industrial average fell 51,97 points on the back of declining US long bond yields, to 8 058,87, after the SA market closed.
Those indecisive market indicators plus bullion’s southward movement caused nervousness among SA investors. Gold hit a fresh 12-year low just after the end of SA trade at $283,85 from a London morning fix of $285,50/oz. Dealers said they were concerned but not surprised by the metal’s fall and expect it to test the $280/oz level before bottoming out at around $275/oz.
Bullion’s continuing misfortunes hit the rand hard. At 4pm the local currency traded at a bid-offer rate of R4,8695-8725 to the dollar from Monday’s close of R4,8670-00. However, thirty minutes later it was trading at R4,8765-90.
Meanwhile, the R150 government long bond yield ended below 14% for the first time since the late October sell-off on Tuesday, largely the result of the lowest producer inflation rate in 26 years. At the 4pm close the R150 was quoted at a 13,97% yield — seven basis points better than the previous close. The longer-dated R153 was last at a 14,065% yield from 14,12% before. The Eskom 168 was quoted eight basis points firmer at a 14,14% yield.