SARAH BULLEN, Cape Town | Tuesday 4.45pm
GOLD ignited markets on Tuesday boosting the Johannesburg Stock Exchange as the all gold index climbed 5,15% as the bullion price shot up over $16 to trade at over $320 an ounce.
The rise in gold injected a firmer undertone into the market boosting equity, currency and bond markets alike.
“With the gold price up there, one can’t over-emphasise what sentiment change there has been to our market with the rise in gold price,” and equity dealer told Reuters.
At close of trade the all share index had climbed 1,23% on the day, with a mediocre performance by the industrial index that gained only 0,32%. The financial index gained 1,555 on the day, boosted by strong performances by Fedsure, Gensec and Theta.
The heavyweight Alsi-40 index outperformed the market as a whole, rising 1,32% after heavy trade in gold producers and Gold Fields in particular. Adding to the buoyancy created by gold’s boom, strong domestic data released over the past week contributed to a firmer market undertone.
The rand made a small gain both the dollar and pound to trade at R6,98 and R9,89 respectively at 4.30pm. Bonds remained flat with the R150 trading at a 14,39% yield.
Added to this Wall Street’s strong close on Monday boosted Asian markets, with Japan’s Nikkei Dow and Hong Kong’s Hang Seng index climbing 0,12% and 0,96% respectively.
Riding the wave of good sentiment, European bourses were all trading in positive territory as they move into the late afternoon. United States markets opened on a rise on Tuesday morning, but dealers said they will remain cautious as the Federal Reserve s Federal Open Market Committee begins its one-day interest rate meeting in Washington.