SARAH BULLEN, Cape Town | Thursday 5.30pm
A STRONG day on local markets was boosted in the late afternoon by the announcement of a surprising large trade surplus, combined with positive growth figures from the United States.
At close of trade the all share index had gained 0,86% — pushed primarily by a 4,24% climb in the all gold index. Dealers said the market opened strongly on Thursday on an upbeat mood after a late rally in the US. Also pushing the market higher in early trade was a rally in the gold price, which pushed though the $300 level to give the local gold board an early boost. Dealers said the local rally was short lived, however, with enthusiasm trailing off by mid-morning.
At 2.00pm the release of unexpectedly strong local trade figures saw markets again pick up interest — but most investors held out for the release of key US third quarter growth figures. Buyers came into the market again after figures revealed that US economic growth rose in the third-quarter but inflationary pressures remained in check.
At close of day the financial index was up 0,27% and the industrial index up 0,51%. Outperforming the market as a whole was the heavyweight Alsi40 index which climbed 1,05% as its heavyweight resources stocks climbed along with the gold price.
Asian market closed higher on Thursday in subdued trade as they held out for the US trade data. Hong Kong’s Hang Seng index gained 0,39% while Tokyo’s Nikkei Dow climbed 0,18% on the day.
European markets bucked the earlier concern over US figures to trade firmly in the black — with London’s FTSE100 index up 1,51% in the late afternoon. Dealers said they were surprised that the local bond market was so slow to react to the positive trade data, with the R150 hovering at a 14,12% yield. At 4.30pm the rand was trading at R6,13 to the dollar and an improved R10,05 to the pound.
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