JSE bounces up as rand surrenders gains.

Posted On Wednesday, 07 May 2003 02:00 Published by
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THE JSE Securities Exchange SA overcame a soft start to close firmer after the rand surrendered early gains against the dollar.
 Dealers said that stronger world bourses had also helped the local market.

 At the close, the all share and all share industrial indices were up 1,01% and 1,21% respectively. Financials were 1,05% firmer.

 The resources and gold indices were both up 0,84%, while the platinum mining index leapt 2,94%. The banks index was 0,51% in the black.

 "We've had an erratic rand and the platinum price has gone up 17," a dealer said.

 He said while the rand was the JSE's main driver on the day, world market strength had also played a role.

 The dealer said that players would be watching the US Federal Reserve meeting. While interest rates were expected to remain unchanged, the focus would be on what Federal Reserve chairman Alan Greenspan had to say about the US economy.

 Diversified resources group led the upside of the market, advancing 1,47% to R109,74.

 It was followed by Swiss-listed luxury goods group Richemont, which rallied 4% to R11,44.

 Richemont announced before the opening its CEO Alain Dominique Perrin was to retire in October this year.

 London-listed financial services group Old Mutual was up 2,33% at R10,98.

 All these shares were up offshore, although the weak rand amplified their gains locally.

 The strong platinum price saw AngloPlat add 4,59% to R228, while AngloGold led advancers on the gold mining index, climbing 2,84% to R224,20.

 Other shares to post good gains included London-listed IT group Dimension Data, which rose 7,43% to R2,17, while retailer Steinhoff rose 5,66% to R5,60.

 BHP Billiton led the JSE's downside, shedding 26c to R37,33. It was followed by Gold Fields, which gave up 60c to close at R74, while retailer JD Group led decliners on the all share industrial index, falling 4,27% to R22,40.

 Specialist bank Investec led decliners on the financial front. It closed 1% softer at R89.

 Overall, advancers outnumbered decliners by almost two to one. Total value traded was R1,771bn with about 109-million shares changing hands.

 BONDS firmed after the weekly bond auction saw only one bidder receive their full allocation out of a total of 35 bidders.

 The strengthening was despite a substantial weakening in the rand in the afternoon.

 Dealers said the market was nervous of taking large positions ahead of the US interest rate decision this evening.

 The benchmark R153 bond was at 10,055% compared with 10,080% at Monday's close and 10,140% at Friday's close.

 The short-dated R150 bond, which used to be the benchmark bond, was at 10,930% from 10,980% at its previous close. The newer R194 was at 10,135% compared with 10,160% before.

 "Players are wary of shorting our bonds, as the US dollar looks so weak.

 "In addition, the US economy is also very weak, so the bias must remain towards easing monetary policy," a bond dealer said.

 The treasury auctioned R500m worth of R194 bonds. It received 35 bids worth R2,31bn, but only one bid was allocated in full and a further four received a partial allocation.

 The R194 was allotted at a yield of 10,08% at a time when it was trading at 10,10%.

 Data released on Monday showed that the treasury had a cash balance of R8,618bn at the end of April 2003 after ending the 2002-03 fiscal year with a cash balance of R9,73bn.

 The R1,112bn reduction in the cash balance was despite the net issuance of R7,42bn worth of domestic bonds, receiving R962,6m in terms of foreign export credit facilities pertaining to the strategic defence package and increasing net short-term domestic loans by R283,5m.

 Foreigners were net buyers of R119,407m worth of bonds on Monday after net sales of R956,327m on Friday.

 Nominal cumulative volume was R29,339bn on Monday from R26,881bn on Friday. I-Net Bridge

    May 07 2003 06:54:56:000AM Business Day 1st Edition

Publisher: Business Day
Source: Business Day

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