Resource firms weigh on the bourse

STOCKS, led by big resource companies, declined yesterday after a broad-based commodity sell-off but some gold and platinum producers bucked the trend as precious spot prices hit multi-month highs.

The benchmark JSE Top40 index lost 1.16 percent to 44 580.51 points, while the wider all share index fell 1.1 percent to 51 609.86 points.

led the decliners, falling 7.18 percent to R103.62,

Exxaro Glencore

dropped 5.94 percent to R51.90 and

shed 5.69 percent to close at R206.54.

China’s iron ore futures slid nearly 5 percent at one point, coming off a rapid rally underpinned by expectations that strong infrastructure spending would spur steel demand in the world’s top consumer.

Oil prices fell 1 percent yesterday after US crude inventories advanced for a seventh week.

Kumba Iron Ore

Gold hit its highest in threeand-a-half months yesterday as the dollar touched a one-week low after the new US finance chief poured cold water on the “Trumpflation trade” that had boosted the greenback this year. Platinum was near a five-month peak.

Meanwhile, the rand was bid at R12.9582 to the dollar yesterday, 11.17c softer than at the same time on Thursday. – Reuters