OWN CORRESPONDENT, Johannesburg | Tuesday 6.00pm
RESOURCE stocks left their high tech counterparts behind on Tuesday, after the sector remained shaky after US tech benchmark, Microsoft, took a weighty knock on Monday. The resource index rose a hefty 1,72% to 5090 but off its intraday highs as some investors snatched quick profits. It remains well down from a closing peak of 6051 reached in early January.
Gainers included synthetic fuel producer Sasol, which added 2,21% to R41,70. The resource rise helped lift the all share index 0,44% or 35 points to 8017. IT stocks lost where resources gained in the wake of the Nasdaq’s biggest ever point drop after software giant Microsoft failed to prevent a judge from ruling it broke anti-trust laws. Losers included Didata, which lost 4,35% to R55,00.
”This looks like a short-term flight from high tech shares into resource stocks,” said Hein Kruger, a Johannesburg-based independent portfolio manager. But local IT shares looked set for a possible rebound on Wednesday as Microsoft and the Nasdaq were both on the mend in early trade.
Industrial shares also lost out with the industrial index dropping 0.58% to 9184. Bonds, rand hold onto gains in late afternoon trade, taking heart from well-bid government bond auction and better-than-expected reserves data.
The yield on benchmark R150 government bond was last bid at 13,65% from 13,77% earlier in the session, encouraged by relatively well-absorbed bond auction and good reserves numbers. Dealers say market could test the 13,60% resistance. The rand was helped by stronger bonds and last bid at R6,55 to dollar from around R6,57 in morning dealings. Traders say market is still skittish after tumble to 18-month low of R6,60 last week. — Reuters