SARAH BULLEN, Johannesburg | Tuesday 5.45pm.
LOCAL stock had a disappointing day on Tuesday, closing flat despite expectation that the latest bull run will roll on into the week.
Dealers said the pullback was surprising, as all major indices except gold ended in negative territory.
Markets were influenced by a both international and domestic factors, with markets primarily questioning whether even a possible cut in United States interest rates will be a sufficient force to turn international markets around.
On the domestic front, dealers said that there are definite indications that interest rates are set to remain at their high levels for a while yet. The repo rate on the day rose fractionally to 21,856% from 21,855% — a minor move, but a definite signal from the Reserve Bank that no relaxation of rates is imminent, dealers said.
Despite the disappointment of a “down day”, dealers indicated that the Johannesburg Stock Exchange my just be cooling down. “It has had a good trot of late,” one commented. Only gold performed well on the day, with the index rising 6,39% as the gold price gained almost $5 overnight.
Bonds followed the general trend, losing ground to close at a 17,32% yield after dipping below the 17% yield in mid-morning trade. The rand gained slightly against the dollar, piling on two cents to R5,82.