ALAN FINLAY&Reuters, Johannesburg | Thursday 4.20pm.
DESPITE predictions by analysts that the all-share index may not have reached the bottom of its correction, the JSE was boosted unexpectedly 1,46% or 117 points on Wednesday.
Gold shares led the way, finishing 3,07% or 36 points stronger. But positive sentiment in the yellow metal was not echoed on global markets where bullion shaved off $1,15 of its value. At 4pm it was trading at $292,50 to the ounce.
Dealers said the market is awaiting Thursday’s outcome of the Reserve Bank’s Monetary Policy Committee meeting. There is speculation that the Bank might fix the repo rate, which has been static at 11,75% since last month’s MPC meeting.
The bourse has been in the throes of a downturn which has taken about 12% off its value since a millennium surge took it to record peaks in mid-January.
The index dipped to 9200 — a low for this year — at the end of January but bounced up from there and has traded more or less in the 9200 to 9800 range since then.
The industrial index, which has outperformed the all-share in recent weeks, ended 1,08% or 102 points up, but remained within the expected 92000 and 98000 range.
Analysts said a breakthrough either level will probably trigger the index’s next significant move.
Financials notched up 0,28% or 28 points on the day.
By late afternoon the rand was trading at R6,35 to the dollar and R10,03 to the pound.
Tokyo’s Nikkei ended 1,83% or 361 points in the black. The Hang-Seng lost 0,83% or 140 points on the day.