/ 31 December 1997

Last-minute rush adds to JSE

WEDNESDAY, 1.00PM:

A LAST-minute rush on the Johannesburg Stock Exchange saw the all share index end the last day of trade for 1997 with a 33-point gain. Three minutes before the noon close, the all share index was still 2,8 points below Tuesday’s close.

At the close the financial index was up 87,0 points at 10 162,9 (at 11.57am it was at 10 107,3) and the industrial index was 41,3 points better at 7 425,7 (at 11.55am it was 7 382,5). The all gold index shed 3,3 points to 802,2 (at 11.53am it was 797,3) and the all share index added 33,0 points to 6 202,3 (it was on 6 166,5 at 11.57am).

In 1996 the respective year-end closes were 7 466,7 (a gain of 36% for 1997), 7 921,6 (a loss of 6,3% for 1997), 1 506,2 ( a plunge of 46,7% in 1997) and 6 676,1 (a slide of 7,1% during 1997).

Bonds ended a shortened New Year’s Eve trading session marginally firmer, having shrugged off disappointing M3 money supply data released late on Tuesday. At 12.10pm the benchmark R150 government long was quoted at a 13,715% yield — 1,5 basis points better than the previous close, but off an earlier best level of 13,68%.

Meanwhile, the rand ended the New Year’s Eve session slightly weaker against the dollar. Dealers attributed the weakness against the dollar to the softer bullion price and the firm US unit on international currency markets. At 12.10pm the rand stood at R4,8660/90 to the dollar from R4,8620 at the previous close.

WEDNESDAY, 10.00AM:

The all share index on the Johannesburg Stock Exchange ended higher on Tuesday despite a 4,5% fall in the gold index as bullion tested the $290/oz level.

At the close the financial index was up 99,8 points to 10 075,9 and the industrial index was 66,5 points better at 7 384,4. The all gold index shed 38,3 points (4,54%) to 805,5, while the all share index gained 39,0 points to close at 6 169,3.

Analysts and dealers expect the gold price to fall even further in the new year, with some predicting it will test the $280/oz level it touched earlier this month.

Gold was last at $290,15 an ounce compared with Monday’s London afternoon fix of $293,05, and the New York close of $291,05. It was bid as low as $289,60 on Tuesday.

Bonds were off their best levels in thin trade late on Tuesday afternoon ahead of the November money supply data, which were released at 5pm after markets closed. At 4pm the benchmark R150 government long bond was quoted at 13,73% yield from 13,70% at the previous close, and off a best level of 13,685%. The Eskom 168 bond was bid at 13,925% and offered at 13,905% from a previous close of 13,87%.

The rand, meanwhile, was surprisingly stable against the dollar in the face of the US unit’s strength against world currencies. After a quiet day’s trade, the rand stood at R4,8620/50 to the dollar from R4,8600 at the previous close.