SARAH BULLEN, Luanda | Friday 4.15pm
THE Johannesburg Stock Exchange corrected on Friday after dipping sharply on Thursday in what dealers said was largely an overreaction to tremors from the United States on Thursday.
After a bumpy week, the market ended the day in positive territory after gaining 0,88% — with all key indices apart from gold ending higher. Gold again proved the market’s Achilles Heel as a falling bullion price took further swipes at the gold board. At 4.30pm gold had again slipped and was bid at $302,80 an ounce with the all gold index having lost 2,36% on the day.
The financial index closed 1,03% higher with strong gains from Fedsure, while the industrial index climbed 1,33%. The heavyweight Alsi40 index gained 0,66% on the day, underperforming the overall market as it was pulled lower by blue-chip gold firms. The rand held its ground against a basket of currencies, trading at R6,12 to the dollar and R10,22 to the pound at 4.30pm.
Dealers said there was an absence of any domestic news to give the market any real local direction. Direction again came from Wall Street where a late recovery on Thursday after early losses in the technology sector sent positive undertones through local markets. US markets opened firmer on Friday morning, buoyed by the market’s late recovery.
On international markets, Asian markets had a mixed day of trade on Friday with Hong Kong’s Hang Seng index climbing 2,72%. Tokyo’s Nikkei Dow lost gains it made during the morning session to close 0,05% lower on continuing fears that the weaker dollar is knocking exporters’ revenues. Major European markets were uniformly upbeat in the afternoon, also taking their cue from a stronger US market.