S.African stocks defy weak rand, finish firmer
11:46 a.m. Jul 02, 1998 Eastern
JOHANNESBURG, July 2 (Reuters) - South African gold shares lifted the
market higher on Thursday as they and other rand hedge stocks were
boosted by the ailing rand, dealers said.
The rand sagged to a fresh low of 6.32 against the dollar, as sellers in
London and Johannesburg continued to pressure the currency. It was last
at 6.2950 (bid) versus the dollar.
The benchmark All Share index ended 1.45 percent or 99 points higher at
6,921.1, bolstered by strong demand for gold and rand hedge stocks.
Gold shares put a glow to the dull market. The influential index gained
7.46 percent or 68.9 points to close at 992.7.
Industrials were also cheered by rand hedge stocks, ending the day 0.62
percent or 49.7 points higher at 8,120.4.
Financials took a knock from the battered rand which raised the spectre
of another prime rate hike by banks fearing a squeeze on their margins.
The banks and insurance stock-laden sector finished down 0.44 percent or
51.6 points to 11,618.7, but off the day's lows.
Turnover for the day was at a healthy 1.5 billion rand. Dealers said
there was a scramble for stocks which benefited from the depressed rand.
Dealers said further buying in gold and rand hedge stocks was seen
continuing on Friday.
The Reserve Bank reduced the daily key repo rate to 20.382 percent from
the 20.527 percent set on Wednesday.
Copyright 1998 Reuters Limited. |
