Gold pushes bourse higher, fails to break key level

THE Top40 index failed to break a key technical resistance level yesterday despite investor interest in gold producers such as Harmony Gold and Anglogold Ashanti. Africa’s biggest producer of the metal, increased for a third day, adding 2.8 percent to R360.22. Gold rose as much as 0.7 percent, a fourth day of advances, reversing a decline.

the nation’s second-biggest producer, climbed 1.9 percent to R128.99.

South Africa’s

third-largest gold producer, cent to R99.52.

“It’s mainly a resource story at the moment,” said Desmond Reilly, a portfolio manager at PSG Konsult. “The gold prices are still sitting around the $1 600 mark. It has picked up nicely from last week.” The Top40 index ended 0.35 percent higher at 29 366.92, after a nearly 3 percent jump on Tuesday. For most of the session, the index was above 29 400 points – a level it has now pierced several times since October, but failed each time to stay above. The broader all share index gained 0.4 percent to 32 899.68 points.

gained 3 per-

The climb in Harmony Gold shares yesterday

On the losing end was Africa’s biggest telecoms company which declined 3 percent to R139.61, as rattled investors worried that the economic impact of US sanctions on Iran could have a negative effect on the firm’s business there. The company is a major player in Iran, where it has more than 32 million subscribers and makes nearly 10 percent of its revenue.

“I would think it has to do with the investment in Iran and the possibility of US sanctions on companies that invest in Iran. I think that’s the problem,” said BOE Stockbrokers analyst Lindsay Roots.