South African gold stocks lost ground at the start on Tuesday after bullion slipped overnight but other miners like Anglo American drew strength from a soft rand and helped to lift the overall bourse.
At 0730 GMT, the all-share index had nipped 0,4% or 35,35 points higher to 9,319.54 points. Decliners outpaced gainers 60 to 51, with 48 stocks unchanged.
Bullion producer Gold Fields was the top-traded stock by deals, trickling three percent lower to R114,50.
Gold stocks were expected to fall after the metal opened at $321,55/oz in Europe compared to New York’s closing level of $322,10/oz after comments from US President George Bush that war with Iraq was not a foregone conclusion. It had slipped to $320,65/oz by 0730 GMT.
Gold Fields peer AngloGold dribbled to R538, down 1,7%, and fellow producer Harmony lost 3,4% to R145.
But other mining stocks like Anglo American and BHP Billiton strengthened with a weaker rand. The currency was at 10,53/dlr by 0730 GMT compared to 10,465/dlr late on Monday.
Rand hedge stocks like Anglo often benefit when the rand slips since they pay costs in local currency and draw earnings abroad. Anglo — the market’s biggest counter — added 2,5% to R138 and BHP Billiton climbed to R48,20, up three percent.
Luxury goods maker Richemont, which lost ground on Monday with other shares that have exposure to the tobacco industry, gained one percent to R14,65.
Traders said the market was expecting cigarette maker Philip Morris to be able to reduce the $28-million in damages it was ordered on Monday to pay a lung cancer sufferer.
Retailer Pick ‘n Pay bagged a 0,5% gain after it reported that headline earnings in the first half of its financial year climbed 33,7% to 37,76 cents. – Reuters