VENTURES AFRICA – JSE shares ended a three-day upswing at the close of markets last night as gold stocks fared poorly.
The poor performance of gold shares like Gold Fields on the JSE followed investors’ anxious wait for economic information from China.
Gold prices tumbled as the metal’s charm as another investment option declined. This followed a rise in equity markets on hopes of continued central bank incentives.
The Top-40 index dropped 0.03 percent to 35,188.43. The All-Share Index was 0.08 percent lower at 39,797.88.
Andrew Brynson, a trader at Nedbank Private Wealth, told Reuters: “Gold stocks are the major losers of the day with the bullion price coming under a bit of pressure … which has dragged down resources.”
The JSE-listed Gold Fields lost 3.6 percent at R61.53. And AngloGold Ashanti slipped 2.7 percent to R166.94.
Platinum producer, Anglo American Platinum (Amplats) sagged 2.9 percent to R335. Impala Platinum tumbled over 2 percent to R115.45.
Reuters reported that investors are now looking closely at diversified mining firms such as African Rainbow Minerals, which gained 3.5 percent to R176.
“We shy away from the single commodity type of company,” Reuters quoted Martin Lentsoane, a trader at Lehumo Capital, as saying.
“It’s a sector that is going to remain volatile and we are aware of that. And we are going to trade it very carefully. We don’t put all eggs in one basket if something happens negatively in South Africa.”