OWN CORRESPONDENT, Johannesburg | Thursday 5.00pm.
THE Johannesburg Stock Exchange ended its four-day bull run on Thursday, dropping around 2,5% on profit taking, with sentiment suffering as extreme volatility infects Asian markets and European exchanges take big hits.
The Dow Jones opened on a downward streak in the afternoon, rattled by recessionary fears and a falling dollar, further reducing confidence in Johannesburg. At one stage, the S&P 500 index, which indicates future confidence, fell 25 points or 2,6%.
In Asia, the Nikkei index tumbled a horrible 6%, tipped by the two-day 12% fall of the yen against the dollar. In New York, there is talk of the Federal Reserve intervening in the currency markets to buff up the dollar. Talk also, by United States Federal Reserve Bank governor Alan Greenspan of further cuts in US interest rates has
As so often of late, the one index in positive territory on the JSE was the all gold, which rose 4% to break the 1300 mark, bullion dropping, but only marginally, to $300,55 an ounce in late afternoon.
The rand dropped 8c, having dipped as far as R5,70 against the dollar, but the new gain in strength affected neither bond rate yields nor the currently-budging repo rate, which persisted at 21,855%.
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