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Johannesburg - South Africa’s Top 40 - (Tradeable) [JSE:J200] index of blue chips failed to break a key technical resistance level on Wednesday despite investor interest in gold producers such as Harmony Gold and AngloGold Ashanti.
The spot gold was last up 0.6%t on the day at $1,611.24 an ounce, lifting world no. 3 gold miner AngloGold 2.8 percent to 360.22 rand and smaller rival Harmony 3% to R99.52.
“It’s mainly a resource story at the moment,” said Desmond Reilly, portfolio manager at PSG Konsult. “The gold prices are still sitting around the $1,600 mark. It has picked up nicely from last week.”
The benchmark blue-chip index ended 0.35% higher at 29 366.92, after a nearly 3% jump on Tuesday. For most of the session, the index was above 29 400 - a level it has now pierced several times since October, but failed each time to stay above.
The broader All Share [JSE:J203] index gained 0.4% to 32,899.68. A convincing run above 29,400 or 29,500 could open up the Top-40 for further gains.
“From February to May it tried to sustain levels above 29,500 and wasn’t able to. If it broke above there it would be a bullish signal but if not it could get a short-term retreat to 29,000 with support at 28,500,” said George Glynos, managing director at financial consultancy ETM.
On the losing end was Africa’s biggest telecoms company MTN , which declined 3% to R139.61 as rattled investors worried that the economic impact of US sanctions on Iran could have a negative effect on the firm’s business there.
The $33.8bn company is a major player in Iran, where it has over 32 million subscribers and makes nearly 10% of its revenue.
“I would think it has to do with the investment in Iran and the possibility of US sanctions on companies that invest in Iran. I think that’s the problem,” says Lindsay Roots, a Cape Town-based investment analyst at BoE Stockbrokers.
The spot gold was last up 0.6%t on the day at $1,611.24 an ounce, lifting world no. 3 gold miner AngloGold 2.8 percent to 360.22 rand and smaller rival Harmony 3% to R99.52.
“It’s mainly a resource story at the moment,” said Desmond Reilly, portfolio manager at PSG Konsult. “The gold prices are still sitting around the $1,600 mark. It has picked up nicely from last week.”
The benchmark blue-chip index ended 0.35% higher at 29 366.92, after a nearly 3% jump on Tuesday. For most of the session, the index was above 29 400 - a level it has now pierced several times since October, but failed each time to stay above.
The broader All Share [JSE:J203] index gained 0.4% to 32,899.68. A convincing run above 29,400 or 29,500 could open up the Top-40 for further gains.
“From February to May it tried to sustain levels above 29,500 and wasn’t able to. If it broke above there it would be a bullish signal but if not it could get a short-term retreat to 29,000 with support at 28,500,” said George Glynos, managing director at financial consultancy ETM.
On the losing end was Africa’s biggest telecoms company MTN , which declined 3% to R139.61 as rattled investors worried that the economic impact of US sanctions on Iran could have a negative effect on the firm’s business there.
The $33.8bn company is a major player in Iran, where it has over 32 million subscribers and makes nearly 10% of its revenue.
“I would think it has to do with the investment in Iran and the possibility of US sanctions on companies that invest in Iran. I think that’s the problem,” says Lindsay Roots, a Cape Town-based investment analyst at BoE Stockbrokers.
