/ 28 January 1998

Financials hit new high

WEDNESDAY, 5.45PM:

THE financial index on the Johannesburg Stock Exchange hit a new record high on Wednesday, helping the industrial and all share indices up 2% each. Unfortunately gold sank below the $299 per ounce level, carrying gold shares down more than 2,5%.

After rising 290,2 points, the financial index closed at 11 075, beating last October’s record of 10 668,2. The industrial index was shoved up 188,2 points to 7 489,3 and the all share index up 160,5 points to 6 344,5.

The gold index dropped 22,2 points or 2,51% to 862,6.

A healthy 109,194-million shares worth R1,28-billion changed hands.

Among the forces herding the bull market were good December trade figures, which showed a surplus of R1,83-billion from November’s negative R73,5-billion, and a 102,14 point rise on the Dow Jones industrial index on Tuesday.

Profit-taking put bonds into a minor decline on Wednesday following an anticipated decline in December consumer inflation to 6,1% from November’s 6,8%. The benchmark R150 government long bond was last traded at a 13,46% yield. The longer-dated R153 bond was a point softer at 13,55%. The Eskom 168 bond was last bid at 13,66%, down two points.

The rand was last at R4,9225 a dollar, up from from Tuesday’s close of R4,9095. The rand briefly touched R4,9275, after foreign exchange dealers heard that President Nelson Mandela had been told to rest for “a few days”.

Gold was last trading at $298,00-50 an ounce from a London morning fix of $298,25.