Industrials Slow After Early Gains
May 01, 2011
The Industrial Index ended up just 2 points to 7738, after trading 35 points higher in early trading. The All Gold Index eased 4 to 1730, while the All Share Index sagged 6 points to 6521. Volume was average, with shares worth 361 million rand exchanged. A sterling start to the week for industrial shares was undone late in the session by a round of futures arbitraging against underlying stocks and some late overseas selling. The steady rand supplied much of the early interest, but as the South African currency lost ground against the dollar in late afternoon trading investors took profits. At the close of local equity trading, the dollar was quoted at 4.5535 rand, but in after hours dealings, the dollar had forged above the 4.5600 rand barrier, little more than a cent from its all-time high of 4.5725 rand set Friday. The late retreat in the rand dented South Africa's conglomerates, with Gencor falling 20 South African cents to 14.20 rand; Anglo American off 1 rand to 249; and diversified industrial supplier Barlow down 25 cents to 41 rand. Computer group Dimension Data was the session's most actively trade share, up 14 cents to 8.66 rand on volume of nearly 5.5 million shares changed hands. Dimension Data acquired a 45% stake in Australian communications group Com Tech Communications for 200 million rand. Elsewhere, pulp and paper concern Sappi gained 10 cents at 43 rand and Anglo American Coal climbed 3 rand to 325. Precious-metal issues gained no strength from a mildly higher gold price and the stable rand. Spot gold was quoted at $386.75 an ounce late Monday in Europe, up slightly from the $386.45 an ounce quoted in New York late Friday. Among losing shares, Harmony fell 80 cents to 43.20 rand and Western Areas slid 75 cents to 59.25 rand. Driefontein Consolidated bucked the trend adding 1 rand at 58.25.
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