SARAH BULLEN Johannesburg | Monday 5.00pm.
SHARES on the Johannesburg Stock Exchange pulled back from heavy earlier losses on Monday with a major boost when it was announced that the country’s December trade balance unexpectedly swung into its largest surplus for the whole year. The the country’s trade balance surged to a surplus of R3,56-billion ($565-million) in December from November’s R567-million deficit — defeating forecasts that the balance would barely scrape into surplus.
Dealers said the early sell-off was due to nervousness after US markets ended weaker on Friday on expectations of a rate hike when the Federal Open Market Committee meets this week to decide on its monetary policy. Local IT counters remained under pressure because of the weaker close of the tech-heavy Nasdaq composite on Friday.
The overall market was 3% down in early trade before recovering ground to close just 0,73% down.
Platinum stock proved a strong player on the day as the price of the metal continued to rise towards to $500 an ounce mark on strong industrial demand and the absence of deliveries from major supplier Russia.
Impala Platinum and Anglo American Platinum bucked overall thin volume and lackluster demand to rise on the day.
Gold did not display such strength, however, as the metal dropped back to %283,50 an ounce — a loss of some $5 an ounce since the JSE closed on Friday. The all gold index lost 9 points, 0,79%, while the financial and industrial indices closed down 0,35% and 0,77% on the day.
The rand pulled back slightly from the 16-month low it hit on Friday to trade at around R6,30 to the dollar after closing on Friday at R6,35. Dealers said the small gains were largely made on dollar sales. Bonds, however, were hard-hit, weakening to a 13,75% yield.
Tokyo’s Nikkei Dow bucked the global trend to rise to a positive close on the day.