/ 18 October 2004

JSE seen up despite firm rand

The JSE Securities Exchange is expected to open firmer on Monday despite a stronger rand. Dealers said they expect the rand to weaken on the day.

At 8.56am the all share index futures (Alsis) were two points up after just three contracts had traded, but the industrial index futures (Indis) were yet to trade.

The rand was quoted at 6,4101 per US dollar from 6,45 when the JSE closed on Friday, while gold was quoted at $419,10 a troy ounce from $419/oz when the JSE last closed.

“We see the rand weakening on the day. There are likely to be [dollar] buyers at around 6,38-6,40 and sellers at around 6,48-6,50,” a trader said.

AFX reports that United States stocks ended higher on Friday, rounding off a week where record high oil prices combined with disappointing earnings reports and mixed economic data to shake investor confidence in the outlook for the economy.

An investigation into the insurance industry by New York Attorney General Eliot Spitzer further undermined sentiment.

The Dow Jones industrial average ended up 38,93 points, at 9,933, sliding 1,2% on the week.

American International Group was the Dow’s biggest decliner on Friday, falling 3,6% on the Spitzer probe over commission practices.

Pfizer was another loser, dropping 2% on concern over the safety of Bextra, one of its blockbuster drugs used in the treatment of arthritis.

The Nasdaq Composite rose 8,48 points, or 0,4% to 1,911.50. The tech-rich index fell 0,4% on the week.

The S&P 500 lifted 4,91 points, or 0,5%, to 1,108.20.

In Tokyo on Monday, Japanese share prices closed lower, driving benchmark indices down for a seventh straight trading day, on concern over surging global oil prices and the possibility of slowing demand from China, dealers said.

The Nikkei 225 stock average closed down 17,33 points or 0,2% at 10,965.62. – I-Net Bridge