MICHAEL METELITS, Johannesburg | Monday 6.00pm.
MOST indices on the Johannesburg Stock Exchange drifted without direction on Monday, while gold lost over 5%. The rand stayed in a range around R6,15, while bonds slipped.
Dealers lamented the lack of direction in the equities market, as a firm opening on the JSE gave way to moderate losses by the end of the day. The all share finished 29 points or 0,41% down, while industrials managed a nominal gain of 15 points or 0,20%.
Financials nudged up 61 points for a gain of 0,62%, while all gold led losers on the day, shedding 53 points for a percentage loss of 5,29% Dealers blamed the imminent sale of 415 tons of gold from teh UK’s foreign exchange reserves for the slip in gold.
On Friday, AngloGold officials argued that the market is prepared for the sales and downplayed any market impact, but on Monday the magnitude of the sales appeared to come home to the market.
While the benchmark R150 slipped 24 basis points to 14,69% by the end of the day, bonds traded mostly in a tight range on Monday. The gold sales had an impact, as did negative sentiment toward the US long 30-year treasury bond.
The rand stayed close to its R6,14 to the dollar Friday close, and dealers noted the quiet in the market as the June 2 elections approach. The unit finished at R6,15 on Monday.
Internationally, Asia fared well on Monday, as Japan’s Nikkei-225 gained 30 points or 0,18%, while Hong Kong’s Hang Seng grabbed 166 points or 1,28% on the day.
In Europe, a late rally based on a strong US open brought most exchanges back from the depths. The bourses had a spell of nerves related to the Nato’s accidental attack on the Chinese Embassy in Belgrade. The FTSE-100 kept losses to 7 points or 0,10%.
In Frankfurt, the Xetra DAX index managed to lose 91 points or 1,73% despite the late rally, while France’s CAC-40 made good to the tune of 57 points of 1,34%.