OWN CORRESPONDENT, Johannesburg | Friday 7.00pm
SHARES end lower for the third day in a row, with the all share index at a three-month low as futures players jostle for positions ahead of the the March contracts close-out next Thursday.
The all share index ended 19 points or 0,25% at 7925, its lowest closing level in three months.
Dealers said that the market barely budged on International Monetary Fund report praising the government for pursuing sound economic policies, but urging increased economic growth and faster labour market reform and privatisation.
The market is seen as being held hostage to futures contracts closeout next week. Market heavyweight Anglo American drops 2,23%. Integrated mining group Iscor extends slide, falls 5,71% on the back of a 53% drop in interim operating profit. The rand pulled back to R6,38 to the dollar after firming to low of R6,37 after the IMF statement praising the government for sound economic policies but urging faster reform to cut unemployment and boost growth.
* ABN Amro analyst Colen Garrow sees rand eventually settling at R6,35 to the dollar, but warns that additional weakness can be expected if the euro comes under further selling pressure. He said the oil outlook is key for currency.
The benchmark R150 bond, due 2005, was unable to make much headway with yields ending at around 13,39%. Strength in other emerging bond markets failed to provide a boost, with no sign of anticipated hedge fund buying. — Reuters