SARAH BULLEN, Johannesburg | Monday 5.15pm.
TAKING its cue from stronger Asian markets, local stock rose like a battered Phoenix as investors returned to the market on Monday.
Gold again led the charge, with the index rising 78 points (8,51%) as the gold price soared $1,85 an ounce to $288,70 from its London morning fix. The gains, however, reached over into the rest of the market with all indices ending firmer.
Dealers said international markets were buoyed by speculation that interest rates are due to start falling in the United States and Japan — a move that will help ease rates in all financial markets. The news sent the Japanese market climbing 5,32% with the Nikkei Dow rising 747 points to 14 790; and Hong Kong’s Hang Seng Index jumping 588 points (7,85%) to 8 076 overnight.
Despite the fairly substantial gains in most sectors, dealers said the day was fairly lacklustre, with nothing to drive sentiment other than the earlier offshore closes and US markets closed due to a bank holiday.
Bonds had a fairly turbulent day, with the R150 climbing to a 18,25% yield before easing off to close at 18,65%. The repo rate remained unchanged at 21,855%. Dealer said they expect the repo to stablise at this level for a while, before easing off a bit as the market regains its feet.
The rand remained firm against the dollar, gaining six cents from Friday to to R6,15 at 4.30pm.