Data provided by iNet BFA
Loading...
See More

JSE resources sell-off continues

Feb 21 2013 10:42 I-Net Bridge


Related Articles

JSE at 3-week low as miners weigh

Platinums hard hit as JSE weakens

Platinum stocks gain‚ gold miners fall

Industrials buoy JSE‚ retailers weigh

Industrials keep JSE positive

JSE edges up as miners recover

 
Johannesburg - Gold counters continued to tumble on the JSE on Thursday morning‚ with a sell-off in platinum and resource stocks also continuing from Wednesday‚ after diversified mining giant BHP Billiton and gold miner AngloGold Ashanti came out with disappointing earnings reports.

Only the general retailers index was in the black in early trade.

At 9:20 the All Share [JSE:J203] index was 0.55% lower at 40 204.95 points after closing 0.75% weaker on Wednesday.

The gold index shed a further 2.99% after tumbling 2.97% on Wednesday‚ platinums gave up 1.99% after dropping 0.44% on Wednesday and resources were trading 1.58% lower‚ after the gauge shed 2.64% on Wednesday.

The platinum price continued on a weaker path‚ giving up 0.67% to trade at $1‚633.00 at 9:20‚ after shedding 2.52% of its value on Wednesday‚ while the gold price was flat (-0.02%) at $1 569.98 at the same time‚ after losing 1.03% on Wednesday.

In international news‚ minutes of the US Federal Reserve’s last policy meeting showed more officials were growing concerned about the cost and risks of further asset purchases‚ Rand Merchant Bank said in a morning note.

“Therefore the third round of quantitative easing (QE3) programme — under which the Fed buys $85bn in bonds monthly — may not last as long as the market expected. Assets seen as having been boosted by the liquidity trade have responded negatively‚” the bank said.

“Gold has been the hardest hit‚ dropping $60/oz on Wednesday alone and continuing to fall in Asian trade this morning. A rumour that a major hedge fund has been forced to unwind long commodity positions has added to the decline. At $1 560/oz‚ prices are at the lowest in three months. Falls below $1‚520/25 could generate a rout‚” RMB said.

It said a full calendar of global data could add to Thursday’s volatility. The morning sees flash purchasing managers index (PMI) figures from Europe; a flurry of US data in the afternoon; and speeches by two Fed members in the evening.

On the JSE‚ global resources giant BHP Billiton (BIL) fell 1.28% to R293.09. That adds to a 4.08% fall on Wednesday after reporting a 43.4% decline in basic earnings per share for the six months ended December 2012.

Gold counter AngloGold Ashanti (ANG) shed 3.08% to R225.05 after dropping 3.61% on Wednesday after it reported adjusted headline earnings per share of $2.39 for the year ended December from $3.36 a year earlier.

Newly listed Sibanye Gold (SGL)‚ formed by the rehousing of some of Gold Fields’ South African assets‚ slumped by 4.23% to trade at R12.69 on Thursday morning.

Impala Platinum (IMP) declined by 2.14% to R142.36 and Lonmin (LON) retreated 3.52% to R48.00. 

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

markets; jse
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

This is what banks do with your money

Gone are the days of saving cash under your mattress. Banks are now the custodians of your precious pennies, but what do they do with them?

 
 

Start saving...

Time the key for retirement saving
Dummy's guide to saving
Save money with affordable account
All about endowments

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...