Johannesburg | Wednesday
WEAK commodity prices elbowed South Africa’s market-dominant resource stocks lower at Wednesday’s start, with mining giant Anglo American and gold producer Gold Fields among the top losers.
By 0730 GMT, the all-share index had fallen 0,3% or 32,5 points to 11,150.5, stamped lower by a 0,8% fall in Anglo to R186,40. Anglo accounts for more than 16% of the overall bourse.
”Gold prices are off, oil has taken a dive and the lower close in the United States are pushing the market to the downside,” said one trader.
Bullion continues to hover below $300 an ounce and is seen pressuring gold stocks until it can re-break that level. The country’s number two producer Gold Fields sagged 2,4% to R106.
Top producer AngloGold lost 1,5% to R506.
Synthetic fuel firm Sasol, the top-traded stock by deals, skidded 0,3% to R130,60 after a sharp fall in oil prices in New York on Tuesday, although prices had steadied by Asian trade on Wednesday.
Banks extended a tentative stop-start rally that began at the end of last week and resurfaced on Tuesday as selective buying interest emerged.
They have underperformed the wider market since the start of the year, hammered by two interest rate hikes and fears over the industry’s exposure to a risky small-loans sector.
Nedcor climbed 1,5% to R125, Investec added 0,6% to reach R146, and Standard Bank gained 0,6% to R31,85. But Absa and FirstRand slipped to 732 cents and R29,90 respectively. – Reuters