Market down as rand strengthens

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OHANNESBURG -- The market ended down on the day as the rand recovered through the R10/$ level.

At the close, resources brought the all-share index down 0,68%. Financials also ended weaker, closing off 0,9%, while industrials and gold edged up.

It was a fairly quiet day with only R2,8 billion shares traded. Market breadth was negative, as resources pulled back on the stronger rand, which broke through the R10 level for the first time since November last year.

The partial recovery in the rand has been fairly swift. There is no doubt that at the end of December it had fallen too far, but few were prepared to call the bottom as locals ran to get out near the top. The recovery has come despite some surprising strength in the US market.

The rand was last trading at R9,98/$, R14,57/£ and R9,16/e.

Bullion was steady to firm at $310,30/oz at the close. The gold market has held up reasonably well, the index ending up 0,86%.

Old Mutual issued a trading statement for the four months ended April 30. It said new life business has been good, but weak

equity markets are continuing to put pressure on income in the US and UK.

Nampak released excellent results for the six months ended March. Revenue improved 17,7% to R6bn, and operating profit before abnormal items came in at R523 million, up 27,5%.

Consumer shares performed well yesterday with Truworths up 7,2% to 595c, Mr Price up 6,7% to 480c, Foschini up 3% at 820c, and Woolies making a new 12-month high at 500c. -- Sharenet