WEDNESDAY, 7.00PM:
LOCAL currency and bond markets reacted well to Finance Minister Trevor Manuel’s speech at Parliament’s snap debate on the rand and its effect on the economy on Wednesday, reports Sarah Bullen.
The stock market, however, did not follow the currency’s lead in making significant gains, While dealers said Manuel delivered good solid comments which were positive for the markets and in keeping with stated government economic policy, the Johannesburg Stock Exchange took its cue from weaker international markets to end 1,15% weaker with the all share index closing 84 points down at 7201.
Again as the rand gained against the dollar, rand-hedge stock took some losses, with the all gold index losing 3,13%, 33 points, to close at 1021. Financial stocks continued to take a battering, losing 1,67%, 209 points, to close at 12293 while the industrial index lost 74 points to 8411.
Bonds opened the day on a shaky note ahead of parliamentary debate, with the R150 falling to a worst level of 16,56% in the morning. A good reception to Manuel’s speech saw bonds pick up in line with the currency, with the R150 closing up at a 16,200% yield. The R153 closed at 16,170% after a previous close of 16,300%.
The rand celebrated Manuel’s reassuring comments, despite the fact that ”nothing was really said” dealers said. At 4.30pm the rand was trading at R6,2650 to the dollar after hitting a worst level of R6,4200. At close of local markets a pound cost R10,3320 — 10 cents cheaper than its previous close.