/ 8 January 2003

JSE seen firmer on weaker rand

The JSE Securities Exchange South Africa (JSE) is set to open in the black on Tuesday on the back of a weaker rand. The rand and gold are expected to be the main drivers of the market.

At 08h46 on the financial derivatives division of the JSE, all share index futures (Alsis) were up 56 points after 16 contracts had traded, the industrial index futures (Indis) were untraded.

“Gold has pulled back gains and we expect to see a lot of interest in resources. I think the market will rally on the back of a weaker rand,” a derivatives trader said.

The rand was last trading at 8,5400 to the dollar from a previous close of 8,5325, while gold was quoted at $350 an ounce from $352,30/oz at the previous close.

He added that the most players will not take positions as yet and will wait for direction from the spot market. Dow Jones Newswires reports that investors’ anticipation of a tax cut reignited the New Year’s rally on Wall Street on Monday, sending stocks barreling higher and lifting the Dow Jones industrials more than 170 points. Treasury prices fell.

The Dow Jones blue-chip index jumped 171,88 points, or 2%, to close at 8,773.57, while the Standard and Poor’s 500 advanced 20,42 points or 2,25% to 929,01.

The Nasdaq composite soared 34,25 points or 2,47% to 1,421.33. In Tokyo, Nikkei closed its first full session of 2003 down 0,7% at 8656,50, as steady selling of key shares in afternoon offsets morning gains. – I-Net Bridge