Stocks Post Partial Recovery
April 04, 2011
The Industrial Index fell 14 to 7967, up sharply from its session low of 7926. The All Gold Index finished 6 points higher at 1791, while the broad measure All Share Index was unchanged at 6752. Trading volume was healthy at 543 million rand worth of shares. Industrial share prices tumbled in early trading as investors became spooked by a steep drop in the rand against the dollar, and by losses in the local bond market. The dollar rallied more than 4 cents to 4.4315 rand amid fears of the widening oversold position of forward dollar sales by the Reserve Bank. After an initial 55-point tumble, institutional investors came back into the market largely in pursuit of industrial blue chips, traders said. Foreigners, who have been net buyers of South African shares since the beginning of the year, were seen leading much of the selling Tuesday along with speculators. Among actively traded industrial shares, steel maker Iscor dropped 6 South African cents to a 2011 low of 2.96 rand; diamond group De Beers Consolidated Mines gained 1.25 rand at 147.25; and mining and investment house JCI closed flat at 43 rand. The gold board managed to post only marginal gains, dashing expectations of a robust rally on the back the weakened rand and an improving gold price. Spot gold hovered above the $385 an ounce level for most of the session, after closing at $384.75 in New York Monday. In the gold sector, Gold Fields collected 1 rand at 122; H.J. Joel Gold Mining gained 10 cents at 4.80 rand; and Western Areas Gold Mining eased 75 cents to 65.50 rand.
