JSE retreats, dragged lower by gold firms

THE BOURSE declined yesterday, dragged lower by gold miners.

The benchmark JSE Top40 index dropped 0.2 percent to 46 819.15 points, while the all share index retreated 0.22 percent to 53 448.69 points.

Gold, which is sensitive to rising US interest rates, fell after Federal Reserve officials sounded a hawkish note on interest rates at the weekend, boosting the dollar.

“The weaker rand is not really helping the gold miners and you have that talk of a (US) rate hike causing additional dollar strength,” Vunani Private Clients trader Roberto Pietropaolo said.

Harmony Gold fell 2.18 percent to R53.97, Sibanye Gold lost 3.04 percent to R58.66, Gold Fields retreated 4.36 percent to R77.90 and AngloGold Ashanti dropped 2.4 percent to to close at R247.

Trading volumes on the bourse were below average, with 228 million shares changing hands compared with last year’s daily average of 280 million.

Meanwhile, US stocks fell yesterday after stronger-than-expected consumer confidence data stoked worries about a potential Fed interest rate hike this year.

The Dow Jones industrial average was down 0.27 percent at 18 453.95 points in the afternoon.