MARKETS Market Report

STOCKS ended almost where they started yesterday, as a global stock rally failed to take root in Joburg, where gold producers maintained their downward march in the wake of bullion’s falling price.

Gold Fields shed 1.8 percent and Harmony 1.7 percent as gold’s spot price extended a recent decline, losing 1 percent with markets betting the US Federal Reserve would begin tapering off its commodity-boosting monetary stimulus as early as this month.

Joburg’s Gold Mining Index, which stumbled over 7 percent last week, lost another 1.1 percent to 1 179.43. The rand gained more than 1 percent against the dollar to reach its firmest level in five weeks, another setback for domestic gold firms who sell their product in dollars but count most of their costs in rands.

“There is not a lot in favour for the gold producers at this time,” said Abri du Plessis, the chief investment officer at Gryphon Asset Management. “The rand is not playing along and the gold price is not playing along.”

Joburg’s blue-chip Top40 index was little changed, slipping just 0.03 percent to 39 060.23. The all share index shed 0.02 percent to 43 594.92. – Reuters