OWN CORRESPONDENT, Johannesburg | Wednesday 5.40pm
GOLD and resources stock stole the limelight on the markets on Wednesday, ending with sturdy gains in an otherwise softer market, troubled by a fall in the rand to near all-time lows on the dollar and softer international equity markets.
Commodity counters clock up hefty gains thanks to healthy increases in their US equivalents overnight. Commodity producers also viewed as a safe haven against a falling rand as they earn revenue in dollars and pay costs in rand.
Paper and pulp firm Sappi soared 350 cents to R52,50 after investment house DLJ starts its rating on it as ”top pick”. The all share index added 0,62% to 7502 while the industrial index dipped 1,59%. The gold index, however, made a hefty 4,27% gain.
The key government bond–the R150–ended 8 basis points weaker at a yield of 13,95% versus Tuesday’s close of 13,87%.
Data released by the South African Reserve Bank on Wednesday morning showed gross gold and foreign exchange reserves rose to R50,0-billion at the end of April from R48,5-billion at the end of March. The utilization of foreign credit lines amounted to R16,7-billion at the end of April from R16,5-billion at the end of March.