Bourse higher, buoyed by gold shares

Top movers Graph of the day

FTSE/JSE Africa Index Series

STOCKS ended higher yesterday as gold stocks advanced along with bullion prices.

The benchmark JSE Top40 index gained 0.89 percent to 44 939.76 points, while the all share index climbed 0.74 percent to 51 504.87 points.

Among the gainers were gold producers, which were supported by a higher spot gold price.

Nedgroup Investments equities trader Bewyn Petersen said gold was reacting to Tuesday’s US consumer prices data that showed a moderation in underlying inflation. That saw the dollar weakening against a basket of major currencies.

“We saw expectations come down slightly for a rate hike from the Fed (US Federal Reserve) in December,” said Petersen, adding that the bets had supported gold.

The metal is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets.

closed 5.32 percent

Sibanye Gold AngloGold Ashanti

higher at R42.97, advanced 3.91 percent at R197.30, while strengthened 3.88 percent to close at R45.

gained 1.73 to R160.30, while 1.12 percent at R194.76.

Trade on the bourse was muted, with about 206 million shares changing hands.

Mr

Harmony Gold Price Shoprite

percent was up