/ 19 July 1999

Markets drift higher before CPI

SARAH BULLEN, Cape Town | Monday 4.45pm

LOCAL stock drifted higher in a thin day of trade on Monday that saw the all share index lift 0,19%.

Heavyweight stock took most of the slack volume, with the Alsi-40 index outperforming the market to rise 0,40%.

The all gold index staged a late recovery after dipping earlier as the gold price fell close to fresh 20-year lows and was last trading at $253,35. By 4.30pm the bullion price had firmed to $254,15 an ounce and gold had picked up 0,36%. Despite murmurings of yet another interest rate cut financial stock underperformed the market on the day, with the index losing a minimal 0,05%.

The industrial index closed in positive territory, with a 0,30% gain. Dealers said the market was sluggish and lacklustre on the absence of any strong domestic news, and is likely holding on Tuesday’s release of consumer inflation data.

International markets followed the United States’ market’s stellar performance on Friday that saw its three key indices hit record highs. Japan’s Nikkei Dow rose 1,56% on the buoyant sentiment. Continuing political pressure with China saw Hong Kong’s Hang Seng index slip 1,56%.

European stock was mixed as it moved into its late afternoon session, with London’s FTSE-100 index off a marginal 0,05%. The rand continued to hold its recent strength, hanging on to the R6,15 to the dollar mark. The bond market was as lacklustre as the stock market, with the R150 holding steady at a 14,26% yield.