SARAH BULLEN, Cape Town | Tuesday 4.30pm
THE Johannesburg Stock Exchange picked up after a slow start to end the day in positive territory, despite an overnight tumble on Wall Street and a rocky gold price.
After early losses, the JSE was trading even by midday and had pulled itself into the black to end the day 0,47% higher./
The climb came despite volatility in the gold price after the metal fell below the psychological $300 an ounce level overnight. At 4.00pm bullion was quoted at $297,10 an ounce after being fixed in London this morning at $297,95 an ounce. The gold board lost 0,93% on the day — its fall tailing off as the price stabilised at the $297 level.
Dealers said that trade on the day was thin, with some bottom-picking coming in in the morning with stock looking cheap. There was strong trade in both pay television company MIH Holdings and its controlling shareholder Naspers after MIHH announced on Monday that MIH will separately list its television and Internet commerce software subsidiary OpenTV Corporation.
The financial board was weak on the day — with confidence in the sector at a low on news that the Reserve Bank has placed FBC Fidelity under curatorship. Also proving volatile in the sector was the announcement on Monday by New Africa Investments Limited (Nail) that it is to unbundle its holding in African Merchant Bank and Theta. At close of trade the financial index was down 0,20% with the industrial index up 1,18%.
The rand held its own against the dollar in early trade before giving up three cents to trade at R6,15 to the dollar at 4.00pm. At that time the rand was at R10,16 to the pound.
On international markets, United States stock ended lower on Monday — again on fears of an interest rate hike. The weaker US market combined with profit taking after Monday’s climb inhibited trade in Hong Kong, where the Hang Seng index lost 1,82% on the day. Tokyo’s Nikkei Dow held its head, however, to end the day 0,13% higher.
Key European bourses were trading in positive territory moving into the late afternoon, despite indications that the US markets may be in for another bear run.