MICHAEL METELITS, Johannesburg | Monday 5.00pm.
The rand broke through the R6 to the dollar barrier again on Monday, driving stock indices and the bond market down sharply.
The rand closed at R6,015 to the dollar, in light trading dominated by a few large dollar orders. The R6 barrier is now a key level for the rand but dealers say it is unclear what the realistic trading level is.
The JSE’s all share index lost 55,30 points, or 1% to 5160,10, while the industrial index dropped 1,20% or 71,44 points to close at 5863,00.
The financial index shed 96,97 points, roughly 1,25%, to wind up at 7710,50 while all the gold index, often a winner in times of trouble, lost 23,44 points or 2,56% to close at 911,50 points.
The sinking rand added downward momentum to stocks after bad news in Asia battered local markets. Thin trade made the large selling orders more important and exaggerated the negative trend.
The benchmark R150 also slipped with the rand, as interest rates are closely connected with currency moves. The bond lost 19 basis points to 16,67, after hitting a worst level of 16,75 on the day. Dealers said the market would head for “more realistic” levels, meaning a weaker rand and higher bond yields. Thin pre-Christmas trade also increased volatility.
International news was uniformly bad, as a massive sell-off in Asia left Tokyo’s Nikkei 225 300 points lower, and Hong Kong’s Hang Seng lost 122 points. European markets were not much better, as the FTSE-100 was down 136 points at Johannesburg’s close and the DAX in Frankfurt was only 2 points up.
RATES AT A GLANCE
Market movements, updated Monday 5.00PM. For more detailed figures from diverse sources, click here.
Rand per US dollar: R6,01
Friday evening: R5,96 Rand per UK sterling: R10,04
Friday evening: R9,97 Rand per Aus dollar: R3,69
Friday evening: R3,69 Rand per NZ dollar: R3,10
Friday evening: R3,10 Rand per Can dollar: R3,87
Friday evening: R3,89 JSE all share: 5 160
Friday’s close: 5 215 JSE industrial: 5 863
Friday’s close: 5 934 JSE all gold: 911
Friday’s close: 935 JSE financial: 7 710
Thursday’s close: 7 807 R150 bond: 16,76%
Thursday evening: 16,48% Gold price: $289,80
Thursday evening: $292,50
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