Gains in South African gold mining stocks helped to balance the overall market in opening trade on Wednesday on the back of a firmer metal price, but banks weighed despite a stronger rand.
At 0735, the all-share index was 0,05% or 4,6 points higher at R9,665.34, with Gold Fields the most traded stock by deals.
It climbed three percent to R114,80 after bullion nipped up to $323,80 an ounce in early European trade compared to $321,45 when Johannesburg traders headed home on Tuesday.
Peer AngloGold added 1,8% to reach R565 and Harmony Gold bounded up 2,5% to R154. AngloGold still retains a hedge book and is less exposed to movements in the gold price.
Bank shares slipped despite rand firmness after recent strong runs. Standard Bank lost 1,8% to R32 and FirstRand ebbed 0,5% to R7,75.
Diversified industrial group Remgro dropped after US firm Phillip Morris Cos Inc — parent of the world’s largest tobacco company — warned on Tuesday it might have trouble hitting next year’s earnings targets as cheap imported cigarettes flood the market.
In June, Remgro attributed most of its 33,9% leap in annual earnings to its investment in tobacco group BAT, the world’s second largest cigarette firm. Remgro’s shares dropped 1,7% to R64,01. – Reuters