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Resources, gold put damper on JSE

Johannesburg - Resources and gold shares were again the culprits that held the JSE back on Wednesday morning, but the other indices did not set the bourse alight either.

By midday on Wednesday the JSE's All-share index was only 0.3% higher from Tuesday's close at 49 349 points, while the Top 40 index lost only 0.1% to 44 156 points.

Of the other indices the Financial index gained 0.74% and the Industrial index was 0.22% higher, but the weakest gold price in nine months pushed the Gold index another 1.89% lower and the Resources index lost 0.89%, although analysts think the sector is heavily oversold.

Not even the weak rand, currently at the lowest level in nine months, could support gold and resources shares. A weak rand is normally favourable for mining companies, as it means they earn more for their exports of commodities.

Analysts said the Top 40 index is close to its 200-day moving average of just above 40 000 which currently serves as a support level.

The Top 40 index last week fell through an important support level of 45 560, and efforts to get back to above that level have so far failed.

Resources stocks are held back by fears about a possible cool-down in the Chinese economy, which could be aggravated by the political unrest in Hong Kong. The markets in Hong Kong and Shanghai were closed on Wednesday for a public holiday.

Read: Hong Kong protest marks uneasy National Day
                      
Anglo American [JSE:AGL] was one of the day's biggest losers and slipped 2.19% to R246.89, while BHP Billiton [JSE:BIL] lost 1.13% to R309.25. BHP Billiton is now 10% lower than a month ago.

Among the gold shares, Harmony Gold [JSE:HAR] was under fire again and traded 1.66% lower at R24.29. The share has lost 24.19% over the last month and 26.5% over the last year.

Gold Fields [JSE:GFI] was also 1.24% lower at R43.66 but only 0.4% lower for the last month.

 - Fin24
 

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Rand - Dollar
18.97
-0.2%
Rand - Pound
24.12
-0.1%
Rand - Euro
20.63
-0.2%
Rand - Aus dollar
12.40
+0.2%
Rand - Yen
0.13
+0.3%
Platinum
911.84
-1.3%
Palladium
1,018.92
-4.4%
Gold
2,161.29
+0.0%
Silver
25.11
+0.3%
Brent Crude
86.89
+1.8%
Top 40
66,252
0.0%
All Share
72,430
0.0%
Resource 10
53,317
0.0%
Industrial 25
100,473
0.0%
Financial 15
16,622
0.0%
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