TUESDAY, 7.30PM:
SHARES on the Johannesburg Stock Exchange ended off their lowest levels on Tuesday, but due to the 18% hike in the repo rate by the South African Reserve Bank, markets remained bearish. Dealers said that although the drastic measure was implemented to save the rand exchange rate, other markets were swamped by the negative news.
The all share index dropped to 7842,1 down 116, from Monday’s close. The industrial index ended on 9571,0, dropping 143,1 from the previous close, while the financial index dropped 245,4 to end trade on 13455,4. The all gold index dropped 25,9 points to close on 984,4.
Bonds ended weaker, but off their worst levels, after a 10-year R100-million Eurorand bond issue forced some short covering in the late afternoon, while the repo rate hike caused the benchmark R150 to trade as high as 13,78% after the noon bond auction results were announced.
The R150 closed on 13,615%, compared to the previous close of 13,490%. The R153 ended trade on 13,800%, after it closed on 13,440% on Monday.
The rand closed against the pound on 8,3642, compared to Monday’s close of 8,3102. The local currency closed markedly stronger against the dollar on 5,1100, after ending at 5,1410 on Monday.
Gold closed on $/oz 297,85, after closing previously on $/oz 300,00.