Sturdy gold stocks drag SA bourse higher

South African gold stocks marched higher at the open on Monday as the price of the precious metal appeared ready for another rally this week, propping up the bourse in positive territory.

The benchmark all-share index added 0,30% or 34,8 points to 11,453.7, lifted by the gold index’s 2,11% early gain. Spot gold was trading at $311.50 a troy ounce, from New York’s last quoted $311.00.

South Africa’s largest gold producer AngloGold hopped up 2,64% or R15.68 to R610, followed closely by GoldFields, which added 2,41% or 350 cents to R149. They were the two top traded stocks by deals.

But dealers sounded a note of caution.

”There are a lot of investors out there with lots of gold stocks and they’re nervous as hell. They’re shaking and shivering and it’s not the cold weather. If gold slips back we’ll see them pile out,” said one dealer.

Financial stocks opened higher on a firmer rand, but slipped back slightly as the currency lost a little strength.

The rand was last at 10.04/dlr on Monday, after breaking below the 10.00 to the dollar level on Friday, the first time since November 29 last year.

Specialised lender African Bank Investments Limited shaved 0.14% to 700 cents after reporting a 2,8% fall in interim headline earnings per share — which strip out exceptional items and their tax effects.

Troubled BOE bank is seen in focus later on Monday when it reports its interim results. – Reuters

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