Gold Shares Ignore Fall in Rand
May 18, 2011
The All Gold index lost six points to 1796, after slipping four points on Wednesday. Meanwhile, the All Share index gained 18 to 6789, while the Industrial index rose 27 to 7970. Total turnover stood at 391 million rand worth of shares. Stocks in the gold sector failed to draw much interest during the session, despite a fresh slide by the rand. Late Thursday, the dollar was quoted at 4.4990 rand, up from 4.4850 rand a day earlier. A weaker rand usually translates into higher earnings for the mining sector, whose sales are mostly denominated in dollars. However, brokers said lingering tensions in the Middle East and the promise of gold sales by the International Monetary Fund in the medium-term are combining to dull the luster of gold shares in the eyes of many investors. The only standout in this sector was Vaal Reefs Exploration & Mining, which gained 4.50 rand to 392.50 rand a share. Among blue chip stocks attracting attention Thursday, Anglo American gained 3.25 rand to 279.75 rand; De Beers Consolidated Mines added 1.25 rand to 140 and South African Breweries gained 50 cents to 125.25 rand a share. Oil and petrochemicals producer Sasol continued to add to its recent gains, putting on 50 cents to 52.25 rand while fellow oil-refiner, Engen, lost 30 cents to 26 rand a share. And Lima was buoyed by the return of bargain-hungry investment funds, pushing the steel-maker's share price up 14 cents to 2.94 rand a share.
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