WEDNESDAY, 5.15PM:
A SECOND day of profit taking hit the Johannesburg Stock Exchange on Wednesday, pulling all indices down.
At the close the all gold index had plunged 31,6 points (3,67%) to 829, the industrial index had dropped 62,9 points to 7 654, and the financial index ended 13 points down at 11 126,1. The all share index was pushed down 62,7 points to 6 506,7.
Turnover, at R854,1-million, was average.
The losses followed profit taking as dealers feared that recent local and international rallies had gone too far and a correction is imminent.
Gold also remained a major sentiment driver after taking a knock on Tuesday when US hedge funds sold the metal. Bullion was last quoted at $298,25 from a London morning fix of $295,20/oz.
Bonds ended stronger in thin trade on Wednesday ahead of Thursday’s bond options close-out and after Tuesday’s rally, dealers said. At 4.15pm the benchmark R150 government long bond was quoted at a 13,38% yield — two basis points stronger than the previous close. The range on the R150 bond was between 13,41% and 13,355%. The longer-dated R153 bond was last at 13,48% compared with Tuesday’s close of 13,50%. Most ooptions are written on the R153 bond.
The rand, meanwhile, surged firmer towards the end of the day as the dollar fell below key levels against the deutschemark and yen. At 4pm the rand was quoted at R4,9135-65 to the dollar from R4,9325-55 late on Tuesday. The local unit traded between bids of R4,9195 and R4,9405 during the day.