/ 11 September 1998

Markets hit by Dow

MICHAEL METELITS, Johannesburg | Thursday 6.30pm.

A plummeting Dow, and little help from overseas investors rocked the share and bond markets on Thursday. Traders suggested that bonds will only pick up if the rand breaks out of the R6,23 to the dollar range. The bright spot was the rising price of gold, which pushed gold shares up dramatically.

The all share lost 123 to close at 4852, while industrials shed 257 to finish at 5502. The release of declining manufacturing figures from the Central Statistical Service accelerated the trading in industrials.

Financials dropped to 6728, a loss of 189 points, while all gold rode the rising price of bullion up 60 points to 1012.

The R150 yield closed above 19%, as traders swapped it for the R153. This curve trading pushed the benchmark bond down 26 basis points to 19,03%.

The rand was last seen at R6,26 to the dollar, slipping slightly.

In London, gold traded at London Gold $285,40-$285,90 at 11:00 am GMT. Locally, the price jumped $6 to 290,25.