SARAH BULLEN in Johannesburg | Tuesday 5.30pm.
THE local stock market continued to hold out for the second day running on Tuesday, with firmer Asian markets providing a boost for local and European equities alike. Dealers are now speculating that most markets have contained their exposure to Russia.
Institutional investors were again back in the market, picking up blueblood stock at ridiculously low levels, dealers said, although the gains were slightly lower than Monday’s. Gold led the climb for most of the day, with the all gold index picking up 1,90% by lunch on the back of a rising gold price. By mid-afternoon, however, the gold price had slipped $2,60 an ounce, wiping out most of the index’s gains. The index closed the day only four points higher at 999. At close of shop the all share index had gained 96 points to 5050, with the industrial and financial indices 106 and 134 points respectively.
Citadel Investment Services chairman Louie Fourie warning investors about the risk of possible “aftershocks” in the market, saying that, “like all decent earthquakes, the market also sometimes takes a temporary break to offer [investors] the opportunity to patch up [their] wounds. “Sometimes, the trembles stay away for good, sometimes they revisit just before the ambulances arrive.
The Japanese market gain 0,74% overnight as the Nikkei Dow Index rose 109 points to 14 899. Hong Kong’s Hang Seng Index rose 3,2% (256 points) to 8 332 — taking its gains for the week to above 10%. Bonds had a good day, the R150 firming with the equity market to offer a closing yield of 18,45%, 20 basis points up from Monday’s 18,65% close.
The rand softened slightly against the dollar, losing nine cents to R6,24 by 4.30pm — largely as a result of dollar strength against other currencies.