SARAH BULLEN, Johannesburg | Friday 5.15pm.
INVESTORS pulled out of South African markets with a flood on Friday leaving the market to end the week on bear run that eroded most of the week’ earlier gains.
Dealers described the day as “utterly dismal” with uncertainty in the currency market and general global market jitters pulling the market down 4,36% with the all share index closing the week at 6039. Added to the general negative sentiment, dealers said that the market read as a major indication of disinvestment United Kingdom telecommunications giant Cable & Wireless’ announcement on Thursday that it is selling it 25% share in MTN.
Although several stock tried to raise their heads during the day, dealers said, they were quickly slapped down. Accordingly all indices ended sharply weaker, led by the financial index which lost 620 points, 5,76% to end on 10148. The industrial index was close on its tail, shedding 4,47%, 238 points, to close at 7003 while the all gold index ended ten points down at 878.
The JSE’s fall, however, was mild compared to the sharp fall in capital market values as bond rates soared to their worst levels in almost eight years on foreign selling. The R150 bond hit a yield of 17,66% from the mid-16% range earlier in the week before inching up to close at 17,74%.
The rand continued to hover around the R6,34 to the dollar mark, sitting at R6,33 at 4.30pm.