SARAH BULLEN, Cape Town | Wednesday 5.00pm
THE Johannesburg Stock Exchange started the day off on a positive note after better-than-expected Producer Price Index (PPI) data gave the market a boost.
The JSE failed to sustain its early gains during the day, however, as weaker international markets and selling pressure on the financial board pushed the market to a lower close.
At close of trade the all share index had lost 0,23%, with the financial index down 1,65% and the industrial index 1,19% lower. The fall in the financial index came despite anticipation of a rate cut in the wake of strong domestic data from the consumer and producer price indices.
The only climber on the day was the all gold index which rode out the ride in the price of bullion that came after the Bank of England’s gold sell-off on Tuesday. The auction triggered off a rally in the weakened gold price that has seen the metal rise to $263,35 — almost $8 worth of gains in a day.
The all gold index took advantage of the strong bullion price to rise 4,87% on the day. The repo rate dropped 6 basis points to 12,75% at the Reserve Bank’s daily auction.
International markets were generally weaker on Wednesday, with Tokyo’s Nikkei Dow again falling on exporter stock with the index tumbling 3,39%. Adding to the negative sentiment was Wall Street’s fall on Tuesday night.
Hong Kong’s Hang Seng index followed the Tokyo market lower with a 1,73% dip. European markets were trading lower in the afternoon session, with US markets fell shortly after opening on Wednesday, as investors continue to watch a shaky dollar with anxiety.
The rand held its position against the dollar at R6,06, slipping against the pound to trade at R9,93 at 4.30pm. Bonds continued to gain ground in light of the strong domestic data with the R150 trading at a 14,59%.