JSE slumps as precious metal prices falter
STOCKS ended lower yesterday, weighed down by mining shares as metal prices faltered, but strong gains by Netcare kept the overall declines in check.
The benchmark Top40 index lost 0.37 percent to 45 082.77 points and the broader all share index fell 0.25 percent to 50 727.22.
Assore slumped 6.55 percent to R183.28 as the boost to iron ore from China’s interest rate cut waned. Spot iron ore prices stayed below $70 (R766) a ton, the lowest since 2009.
“The dollar is putting a lot of pressure on a lot of commodities even after that China rate cut because China’s economic fundamentals have not changed,” Mohau Mochebelele, a trader at Lehumo Capital, said.
Gold mining stocks also featured on the decliners’ list as the price of bullion edged down. AngloGold Ashanti slumped 3.81 percent to R106, Har
mony Gold shed 1.06 percent to R18.71 and Gold Fields fell 0.21 percent to R48.
“If oil remains below $80, you’ll see resource shares coming lower because it is showing there is not enough demand for resources,” Greg Davies at Cratos Capital said, adding that lower oil prices were a boon for other shares because it meant lower energy costs.
In earnings news, Netcare surged 6.9 percent to R35.99 after reporting a 20 percent rise in full-year profit.