Share

JSE ends in the red

Johannesburg - South African bullion producers such as Harmony Gold remained under pressure on Tuesday, weighing on the wider market which ended in the red, after the precious metal fell to a nine-month low in the face of relentless dollar gains.

The benchmark Top-40 index slipped 0.11% on the day and has lost almost 4% this quarter, the biggest fall since the same period in 2011 when it fell more than 7%, pushing it further back from record peaks hit in July.

But the market could be in for a technical bounce as the Top-40's 14-day RSI - a momentum indicator tracked by chartists - has strayed into oversold territory. This helped the index pull back from deeper losses earlier in the session.

Africa's top gold producer AngloGold Ashanti lost 0.37% but came off troughs reached earlier in the day.

Rival Harmony Gold shed 2.33% to R24.70 while Gold Fields ended 2.35% lower.

Sibanye Gold bucked the trend, adding 4.75%, after it said Van Eck Associates Corporation, an asset manager, had raised its stake in the company to over 5%.

This is a sign of confidence in a gold producer which has positioned itself as a dividend play because it is mining mature assets that generate cash.

But the overall picture for bullion is gloomy.

Spot gold touched its lowest since January 1 at $1 204.40 an ounce and is on track for a quarterly loss of 9%, hit by expectations that the dollar will rise in tandem with US interest rates.

"Gold bulls' worst nightmares involve a rampant dollar and surging real interest rates," Macquarie analyst Matthew Turner said.

The benchmark Top-40 index lost 0.11% to 44 160 while the wider All-share index shed 0.07% to 49 336.

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
18.94
-0.0%
Rand - Pound
23.91
-0.0%
Rand - Euro
20.42
+0.1%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.13
-0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
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