JSE slumps as pre­cious metal prices fal­ter

The Star Early Edition - - PRICES -

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.

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