ALAN FINLAY, Johannesburg | Thursday 4.00pm.
THE JSE recorded losses for the second day in a row on Thursday, after the US interest rate hike of half-a-percent pushed the bourse lower on Wednesday.
The overall finished 0,55% or 41 points down.
The rand also weakened considerably, touching a new low of R7,18 to the dollar during the day. By 4.15pm it had bounced back and was trading 5c down at R7,14 to the US currency.
Dealers blamed a faltering euro for much of the rand’s weakness, although the dollar moved stronger against most major currencies.
The rand strengthened slightly against the pound and by late afternoon was trading at R10,58 to the British currency.
Gold shares knocked up the biggest losses on the local bourse, finishing 1,53% or 14 points down. Gold lost 25US cents on international markets, and at 4pm was trading at $272,85 an ounce.
Anaylsts said there is little buying expected ahead of Tuesday’s Bank of England bullion sale in which it will sell 25 tons of the yellow metal.
Financials finished 0,93% or 85 points lower, while industrials lost 1,05% or 89 points on the day. Dealers said there is some wariness ahead of the outcome of central bank’s Monetary Policy Committee meeting on Friday, although a rates hike is not expected.
Asian markets also traded lower on Thursday, the Nikkei closing 2,14% or 372 points down and the Hang-Seng 3,41% or 505 points weaker. At 4pm London’s FTSE 100 was up 0,86% or 53 points. The Dow Jones was also stronger 0,79% or 85 points in early trade.