/ 26 August 1998

Bomb blast crashes JSE

SARAH BULLEN in Johannesburg | Wednesday 4.00pm.

THE Johannesburg Stock Exchange had lost 8% of its value by 3.50pm on Wednesday, with shares gaining downward momentum by the minute as the fall assumes crash dimensions.

All indices have taken some of their worst falls on record, with the financial index plunging 8,81% (868 points) and the all gold index falling 8% (67 points) in the day. The industrial index was 6,92% down (475 points) by 3.50pm. Initial fears that Tuesday night’s bomb blast at a Cape Town restaurant caused the plunge appear only to scratch the surface, with dealers suggesting that the large-scale dumping of shares is the manifestation of a larger financial market crisis.

The accelerating fall is being exacerbated by soaring local bond yields, with the R150 government bond rocketing to a 18,70% yield from 17,94% late on Tuesday.