Gold Stocks Extend Losses
March 30, 2011
The All Share index rose 31 to 6715 and the Industrial Index moved ahead 48 to 7945, but the All Gold Index gave up 18 at 1790. Thursday's volume remained on the light side, with about 400 million rand worth of shares exchanged. Traders said blue-chip stocks were among the more favored issues on the exchange Thursday, by both overseas and local investors. Trading activity was sluggish, however, with investors reluctant to take positions in the market amid worries about the volatile U.S. equity market. The gold index continued to slump, shrugging off bright quarterly results from Anglo American, the world's biggest gold producer. Anglo's gold and uranium division reported a 43% rise in quarterly net profit to 322.7 million rand. Another producer posting stellar earnings also failed to spark buying interest. Free State Consolidated Gold Mines said its quarterly income more than doubled to 126.5 million rand, but its share price eased 15 South African cents to 45.60 rand. Both the rand and the spot bullion price -- the driving force on gold stock price performance -- ended largely flat for the session. The dollar was quoted at 4.3905 rand in late-afternoon European trading, while gold hovered near $384 an ounce. Other retreating shares included Anglo-controlled Vaal Reefs Exploration & Mining, which fell 9.50 rand to 375, and Harmony Gold Mining, which lost 60 cents at 45. Elsewhere, diamond giant De Beers Consolidated Mines rallied 1.75 rand to 142.75; banking group First National Bank Holdings gained 95 cents at 29 rand; and pulp and paper concern Funderburk added 60 cents at 46 rand.
