Share

Gold stocks add shine to JSE

Johannesburg - The JSE was straight into positive territory on Wednesday, led by gold stocks which were boosted by a record spot gold price of $1 456.85 a troy ounce achieved late on Tuesday.

Gold continued to trade near record highs on Wednesday, while sentiment abroad also buoyed the local market.

By 09:13 local time, the JSE All Share [JSE:J203] index gained 0.24%, pushed by gold miners, up 2.24%, with platinum miners picking up 0.40%. Resources advanced 0.61%.

Banks, meanwhile, lost 0.26%, financials slipped 0.09% lower and industrials were flat.

The rand was bid at R6.68 to the dollar from R6.70 at the JSE's close on Tuesday. Gold was quoted at $1 455.86 a troy ounce from $1 442.14/oz at the JSE's previous close, while platinum was at $1 799.50/oz, from $1 793/oz previously.

A local trader said: "Metal stocks dominate the theme this morning, boosting stocks including AngloGold Ashanti [JSE:ANG], Harmony Gold Mining Company [JSE:HAR] and Anglo American [JSE:AGL]. US futures and stocks in Asia were also mostly firmer, all helping towards a rosy start on the JSE."

Dow Jones Newswires reported that Asian stock markets were mostly higher on Wednesday, as investors took a rate hike from China's central bank in their stride, while gold plays around the region gained as the metal's price touched a record high.

Japan's Nikkei Stock Average edged down 0.5%, and South Korea's Kospi Composite was down 0.5%. Hong Kong's Hang Seng Index added 0.4% and China's Shanghai Composite tacked on 1%.

The People's Bank of China raised interest rates by 25 basis points, to 3.25% for one-year deposits in local currency, and 6.31% for one-year loans.

The move, effective on Wednesday, marks the fourth hike in less than six months and follows a spate of other tightening measures, including reserve requirement increases and efforts to curb bank lending and cool the property market.

While markets had been widely expecting the hike, the timing came as somewhat of a surprise and suggests Chinese inflation, which some thought had peaked, may have turned up again after slipping to 4.9% in January and February from 5.1% in November.

European stocks are expected to start mildly higher on Wednesday, with basic resources stocks expected to offer support as the price of gold continues to surge.

Gold futures surged to a record high and silver hit a new 31-year peak on Tuesday on investors' desire for safe-haven territories. 
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.91
+0.1%
Rand - Pound
23.87
+0.1%
Rand - Euro
20.37
+0.3%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent-ruolie
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders