SARAH BULLEN, Cape Town | Monday 4.20pm
GOLD again dominated the Johannesburg Stock Exchange, but, unlike last week’s heady gains, this time it was as the metal continued its fall back towards the $300 an ounce level.
The gold board lost 6,69% on the day as the metal fell after opening in Hong Kong at around $317,50. By 4.00pm gold was back up to $318,05 an ounce.
Despite gold’s fall the market ended up in the black with the all share index up 0,62% due to a strong run by financial and IT stock, which dealers said are attracting attention at their current low levels.
At close of trade the financial index had gained a steady 2,16%. The industrial index also put in some strong gains with a 0,88% climb.
Also creating interest in the market was an announcement by Anglogold that it is bidding for one of Australia’s premier gold companies, Acacia Resources. Dealers said the market was mixed on the news, with some investors thinking that Anglo’s offer is too high at A$3,30, a 24% premium to their Friday close of A$2,66.
The market was also a little cautious as the fate of the SA-European Union free-trade agreement hung in the balance for most of the day. The deal was finally signed at 2.00pm, brining a sigh of relief in the markets. The repo rate dropped by one basis point today to 12.33%. No much direction from international markets with United States and Japanese markets closed for public holidays. Hong Kong’s Hang Seng index dipped ahead of an announcement of the sale of the massive shareholding the government acquired when it propped up the market last year.
Bond firmed slightly on the day with the R150 offering a 14,39% yield. The rand dipped, however, along with the gold price to trade at R6,06 to the dollar and R10,03 to the pound at 4.00pm.