South African shares opened 0,4% softer on Thursday, led lower by gold shares which tumbled as investors moved to lock in profits after a recent surge in the sector.
”We’re seeing some profit-taking on the (gold) shares. They had a really good run yesterday,” said Kilian Roche, equities dealer at PSG Online Securities.
At 0744 GMT, the key gold index was down 6,3% with the country’s second biggest gold producer Gold Fields, shedding 9,2% to R119. Gold Fields which was the top traded stock by deals on Thursday, rocketed 20,7% the previous day.
Gold shares have been the highlight of the Johannesburg bourse this week, seesawing wildly after movements in the bullion price.
South Africa’s leading gold producer AngloGold shaved off 2,1% to R595 and smaller rival Harmony Gold slid 6,7% to R133. Harmony and Gold Fields both strive to be least-hedged as possible.
The broader all-share index shed 37,93 points at 11,094.10, hurt also by losses in other big miners as traders adopted a wait-and-see attitude ahead of a decision due on Thursday from the central bank’s monetary policy meeting.
Global diversified miner Anglo American Plc dipped 0,6% to R181,50. World number one platinum producer Anglo American Platinum lost 0,4% to R452.
The central bank is expected to announce 100 basis point interest rate hike, the third this year, in its campaign to stem the inflationary impact of the rand’s slide last year.
Spot gold was trading in a narrow range in Asia on Thursday as sentiment toward the yellow metal cooled amid expectations of more consolidation before currency and equity markets signalled the next campaign, traders said.
It last traded at $318,25/8,75 compared to $320,20/0.70 late in New York. – Reuters