Caution - heavyweights at work
According to the Efficient Group one of South Africa’s leading fashion retailers, Truworths (+5.10%) helped the retail index (+2.43%) to close just below the 20 000 level.
Building materials retailer, Cashbuild (+3.30%) sparked investors’ interest, it closed at R38.75.
There was a glimmer of hope on the currency market as the rand took 10 cents from each of the dollar and euro. Analysts believe that a gold price (-0.27%) more than 350 euros per ounce could trigger a rally in the gold market; the current price is 345 euros per ounce.
The oil price (-0.90%) closed lower yesterday even after a statistical agency in the US raised Chinese oil demand for 2006 from 500 000 barrels per day to 600 000 barrels per day.
On the US equity markets the Nasdaq (-0.41%) has lost almost 1% from the beginning of the month. Germany’s benchmark, the DAX (+1.53%) rose to a three year high after industrial production for April increased by over 1% (m:m).
Bargain hunting is currently the reason for the fine performance of the Nikkei 225 (+0.71%). The wholesale and retail trade data for March scheduled for later this morning should be the highlight of the day.
