Losses in mining giant Anglo American pulled down the South African bourse in early trade on Wednesday, ahead of the release of a draft mining charter aimed at boosting black participation in the industry.
At 0824 GMT, the all-share index had fallen 0,5% or 47,71 points to 9,258.38 points, but bullion producers like Gold Fields and Harmony Gold, and as well energy group Sasol supported the index.
”The market is being pulled down by Anglo and at this stage there is no real reason. The market is quiet and investors are waiting for the details of the draft mining charter later today,” a trader said.
Anglo American, the market’s biggest share, fell 3,6%to R132 after dropping to an early low of R131,40.
A first draft leaked in July scared investors with suggestions that 30% of mining assets and 51% of all new projects of all new projects be sold to black businesses within 10 years.
Mining stocks came under heavy selling pressure, with Anglo American losing almost a fifth of its value. The charter, stipulated in the Minerals Bill, will set targets and deadlines to increase black participation in the white-dominated mining industry.
Sasol gained 1,4% at R110.20 despite slightly flat oil prices.
Gold Fields climbed 1,8% to R115, while peer Harmony added 0,7% to R157,10 as bullion opened higher in Europe.
Spot gold was trading at $318,70 an ounce by 0821 GMT, up from the close of $318,14 in New York where the market was punctured by US President George Bush’s speech saying war in Iraq was not inevitable. – Reuters