Bourse tanks while gold stocks shine

STOCKS tanked yesterday as an almost 9 percent dive in Chinese shares and a sharp drop in the dollar and major commodities sent investors scrambling.

The Top40 index lost 2.89 percent to 42 149.24 points. It lost close to 6 percent at one point in volatile trade, hitting 41 037, its lowest level since October. The broader all share index fell 2.85 percent to 47 631.19.

Losses showed across the board, as big resource stocks such as Kumba

Iron Ore led the way with a 6.43 percent fall to R83.77 after a record intraday low of R81.

“Everyone is pulling out because you don’t want to be the last one standing. Our markets are very liquid and so investors can get in and out easily,” NKC African Economics economist Christie Viljoen said. Local shares in Kumba’s parent,

Anglo American, skidded 6.52 percent lower to R138.75. Momentum indicators suggest both have now strayed into oversold territory, which could entice some investors back.

Shares in gold producers managed gains, as bullion’s spot price held near seven-week highs on a dollar slump, the global equity rout and the rand’s fall to a record of R14 to the dollar.

AngloGold Ashanti climbed

7.58 percent to R115, while Harmony

Gold added 6.34 percent to R14.25.