/ 15 October 1999

JSE dips again on US jitters

SARAH BULLEN, Cape Town | Thursday 4.55pm

THE Johannesburg Stock Exchange again began and ended the day softer on Thursday, yet again taking its cue from United States markets where Wall Street notched up a second day of sharp losses.

At close of trade the all share index had dipped 1,07%, lifting before lunch before it slacked off again in the afternoon. Underperforming the overall market was the heavyweight Alsi40 index which lost 1,45% on the day.

Both the financial and industrial indices notched up losses, falling 1,01% and 1,43% respectively. The industrial index was pulled lower by two of its heavyweights, Richemont and South African Breweries, which also hit the Alsi40. Again only the gold index closed in the black, climbing 0,73% as the gold price held above the $320 an ounce level, gaining ground to a bid of $322,50 at 4.30pm.

The rand managed to stop its slide against the dollar and pound and at 4.30pm was trading at R6,10 and R10,11 respectively. Asian markets rose on Thursday as investors welcomed news of a merger between two large Japanese banks, Sumitomo Bank and Sakura Bank.

Tokyo’s Nikkei Dow gained 0,15% and Hong Kong’s Hang Seng index 0,09%. European shares dipped in early trade on Wall Street fears, and continued to trade lower in the afternoon in anticipation of an early drop on Wall Street. Despite fears, US markets picked up shortly after opening on Thursday as investors swooped in to pick up some stock after two days of fall.