Gold and platinum mining stocks were sharply in the red by midday, led by news that local mines had halted production over power supply concerns.
However, the JSE was still holding onto its gains, which was underpinned by the rally in Asian markets.
By noon, the JSE’s broader all-share index was up 0,38%. Industrials lifted 0,99%, and financials added 0,4%, but banks were off 0,12%. Resources shed 0,1%, while the platinum mining index fell 3,12% and the gold mining index tumbled 6,29%.
The rand was bid at 7,07 to the US dollar, from 6,99 when the JSE closed on Thursday, while gold was quoted at $918,45 a troy ounce from $888,98/oz at the JSE’s last close. Gold was only $4,35 off its new high hit earlier of $922,80/oz.
The platinum price was trading at its fresh high of $1 654,50 hit on Friday. The white metal was up $46,50, or 2,89%, from its overnight close.
In Asia, the Hang Seng rallied 6,73% and the Nikkei lifted 4,1%.
“The JSE is a little firmer after Europe and Asia had a run up again, and it is getting a bit of strength, but a lot of gold and platinum stocks have fallen,” said a local trader.
Gold and platinum mining stocks were lower, even though the gold and platinum prices were trading near fresh record highs hit earlier on Friday, as the electricity shortage currently being experienced in South Africa caused the miners to halt production at their South African operations.
The trader explained that gold and platinum shares were getting hit quite hard on the JSE because of the news.
“What next? I’m punch drunk with all that is going on. I’m not surprised,” he said.
Local gold mining companies Gold Fields, Harmony and AngloGold Ashanti all confirmed on Friday that they had halted production at all their South African mines, as power cuts by national power utility Eskom threatened the safety of their workers.
AngloGold Ashanti said on Friday that Eskom had not indicated how long the situation would continue, but noted that it was in contact with the electricity supply body.
On the JSE by noon, AngloGold Ashanti had lost R21, or 6,69%, to R293, Gold Fields weakened R8,38, or 7,11%, to R109,50 and Harmony gave up R4,22, or 5,15%, to R77,76.
However, Gold Fields did say on Friday that it was looking at ways to continue operations, adding that it would work closely with Eskom to try to resolve the current problems.
Platinum miner Anglo Platinum also said that it has stopped operations at all local mines due to lack of electricity, and it was also understood that Impala Platinum had also suspended operations, but it was not immediately available to confirm this.
Anglo Platinum’s share price lost R35, or 3,61%, to R935 and Impala Platinum pulled back R7,40, or 2,98%, to R240,60.
Resource group BHP Billiton gained R7,35, or 3,88%, to R197, while Anglo American edged up R1,90 to R377. Sasol improved 65 cents to R320,65.
Elsewhere, diversified industrial group Barloworld lifted R2,10, or 2,32%, to R92,60 and brewer SABMiller advanced R5,50, or 3,41%, to R167.
Among financials and banks, Investec was up R1,02, or 1,71%, to R60,82, Investec was R1,66, or 2,86% better, at R59,66 and Absa pocketed R1,20, or 1,14%, to R106,80.
Telecommunications group Telkom was 75 cents softer at R139 but MTN Group collected R3,04, or 2,73%, to R114,58. – I-Net Bridge