Choppy Trading Ends Mixed
May 19, 2011
The All Gold Index fell 14 to 1782, the Industrial Index gained 5 to 7975, while the broad measure All Share Index eased 3 to 6786. The highlight of the session was a lengthy interruption in dealings caused by a technical breakdown between the Johannesburg Stock Exchange's automated trading system and a small minority of brokers' screens. In keeping with the principle of allowing trade by all members, the exchange suspended activity until communications links were re-established almost five hours after trading was halted. In an unprecedented move, the exchange extended trading one hour to permit aggravated brokers to fill order books. Futures traders dominated much of Friday's activity, continuing their practice of arbitraging derivative positions and the underlying stocks. An initial industrial-share selling spree gave way to steady demand and a recovery in many shares, traders said. Among actively traded shares, pulp and paper group Sappi fell 20 South African cents to 42.80 rand, largely on the back of a foreign sell order of some 600,000 shares. Amalgamated Banks of South Africa climbed 70 cents to 22.10 rand, and industrial holdings concern Malbak slipped 70 cents to 19.60 rand. Gold shares posted slim losses, with investors unimpressed by the flat state of the gold price. Spot bullion hovered around $385.50 an ounce for most of the trading session, down slightly from its Westside close Thursday at $385.75 an ounce. The weak rand offered little in the way of support as the dollar stayed firmly above the key 4.5000 rand level Friday. Free State Consolidated Gold Mines eased 75 cents to 49 rand and Western Areas Gold Mining fell 1 rand to 63.
