Battered Rand Spooks Investors
May 02, 2011
The broad measure All Share Index tumbled 76 to 6445 -- its lowest level since early January -- led by an 88-point retreat in the Industrial Index to a nine-month low of 7650. The All Gold Index closed largely flat, up 1 at 1731. The composite index slipped 6 points on Monday, while the industrials gained 2 points. In an active and volatile session, stocks worth more than 467 million rand changed hands. Industrial-share support levels were under fire from the opening bell Tuesday, as traders dumped portfolios of stocks with abandon. The collapse of the rand to a fresh low against the dollar in overnight New York trading served to deeply undermine investor sentiment, said traders. The dollar touched a new peak of 4.5865 rand in local after-hours trading Monday, but recovered somewhat, with Reserve Bank intervention, to a late Tuesday level of 4.5665 rand. Heavyweight conglomerate South African Breweries fell 3.00 rand to 115.50 after trading as low as 114.00 rand, while tobacco and industrial holdings concern Rembrandt slumped 1.50 rand to 36.00, a recovery from an intraday low of 35.40. Construction and manufacturing supplier Barlow sank 85 cents to 40.15 rand after announcing its acquisition of Taubmans, Australia's third-largest paint producer, for 135 million rand. Gold shares ended mixed in very light trading, noted by an almost complete absence of foreign interest. Second-tier stocks appeared to benefit the most, with H.J. Joella Gold Mining collecting 25 cents to 4.35 rand and Kinross Mines up 40 cents to 44.00 rand. Heavyweight Kloof Gold Mining sagged 50 cents to 43.80 rand. Spot gold prices were largely static, remaining in a narrow trading range between $387.00 and $387.50 an ounce.
