Volatility in Rand Hurts Stocks
April 28, 2011
The broad measure All Share Index fell 37 points to 6527, led lower by pullbacks on the All Gold Index, down 28 to 1734, and the Industrial Index off 38 points at 7736. On Thursday, the composite index lost 52 points, the industrials dropped 79 points and the gold index eased 16 points. Trading volumes were average with 355 million rands worth of shares changing hands. Once again, the rand was the catalyst for equity trading flows. In early currency dealings, the dollar catapulted to a record high against the rand of 4.5725 rand, just eclipsing the previous barrier of 4.5700 rand set in late April. Share prices reacted badly to the rand's record-setting fortunes, though they had become increasingly expected in recent sessions. A modest rally in the rand appeared to brake the slide in industrial shares and later in gold shares, which normally advance on rand weakness. Amalgamated Banks of South Africa slid 55 South African cents to 20.20 rand, flagship Anglo American gained 100 cents to 250.00 rand, while pulp and paper producer Sappi tumbled 2.80 rand to 43.00 rand. Sappi disclosed Thursday that export earnings would be severely dented by ill timed forward sales.
VastPress 2011 Vastopolis
