SARAH BULLEN, Johannesburg | Tuesday 5.00pm.
THE Johannesburg Stock Exchange appeared to have come out of a long winter on Tuesday as positive sentiment from Monday spilled through into the markets.
Dealers said the market was firm across the board, largely as a result of a growing outlook that the worst of the domestic economic strife may be behind us. This positive outlook was sparked on Monday when credit rating agency Moody’s reaffirmed South Africa’s investment grade rating despite the spate of knocks the economy has taken during the global market turmoil. Rumours of an immenent rate cut also pushed markets higher, dealers indicated.
Added to the good domestic cheer, was firmer international markets, dealers said, with European markets posting steady gains and pulling domestic stock higher.
Bonds were particularly strong on the day, with the R150 breaking the 17% floor to settle at 16,82% for the day as liquidity rose in the market. Dealers said that, considering the R150 was looming towards a 20% yield two weeks ago, the bond market has executed no less than a miraculous turnaround.
The strong demand for bonds also pulled equities up, with financial stock leading the rise as the index posted a 4,27% yield.
Gold again lost ground as the price of bullion fell from a London morning fixing of $296,35 to $295,05. The all gold index lost just under 5% on the fall. The rand again held its ground, trading at around R6,01 to the dollar for most of the day.