MICHAEL METELITS, Johannesburg | Wednesday 4.30pm.
SLIGHT gains on most JSE indices were offset by massive losses on the all gold composite, while the rand and bonds were steady or up on Wednesday.
The day was marked by light trading and overshadowed by International Monetary Fund’s declining fears of global recession. The international lender indicated on Tuesday that as international investors regain their taste for risk in emerging market debt, strong economic fundamentals will be key in attracting capital.
A more attentive approach by international investors to debt issues will benefit South Africa, once labour and privatisation issues are tackled.
The all share index barely moved on Wednesday, posting a loss of 1,45 points and closing at 5180,70, while the industrial index inched up 2,28 points to finish at 5992,40. The financial index moved up to 7888,60, a gain of 69,54 points.
The all gold index was the day’s big loser, shedding 30,26 points to wind up at 852,40.
The rand slipped a few cents against the dollar, finishing at R5,92, down from Tuesday’s R5,90 to the dollar close.
Bonds managed reasonable gains despite the currency doldrums, picking up 7 basis points from its previous mark of 16,35%, and ending the day at 16,28%.
International signals were generally positive, as Wall Street’s Dow Jones gained 55 points overnight and European indices were up. London’s FTSE-100 gained 33 points, or 0,5% by close of business in Johannesburg, and Germany’s principal index, the DAX, jumped 119 points for a gain of 2,48%.
Asian markets were less than buoyant, as Hong Kong’s Hang Seng dropped 164 points or 1,59% on Tuesday and Bangkok’s SET composite scratched out a 0,61 point gain, or 0,18%. Tokyo’s Nikkei was closed for a national holiday Tuesday.