South African shares are seen recovering on Thursday as investors pick up bargains after shares were beaten in Wednesday’s global sell off on an accounting scandal at phone company WorldCom Inc, dealers said.
But gold shares, Wednesday’s gainers, are seen coming under pressure after the price of the precious metal opened slightly lower in Europe and investors crept back to equities.
Domestic bank First Rand is seen coming under the spotlight after news of its $12-million exposure to WorldCom, but dealers said the effect would be limited.
”It’s such a small amount, it won’t have much impact,” said one.
By 0647 GMT the all-share futures contract was up 37 points at 10 280 points. The industrial futures contract was up 21 points at 7 081. – Reuters