Stocks fall as precious metals producers tumble

Foreigners remained net sellers for a second day on Tuesday.
Image: Moneyweb

South Africa’s main stock index fell 0.3% by 9:46 am in Johannesburg, as a slump in bullion prices pulls gold stocks lower, and as platinum producers decline.

South African equity market joined peers in Asia and Europe in sliding, as risk sentiment took a beating amid doubts over the timing of a US spending package. Investors are concerned that a deadlock in Washington could significantly delay the US virus rescue package, weighing on the nascent recovery.

Gold and platinum producers joined iron ore miners to drag the gauge for mining stocks down for the fourth day, the longest losing streak since March 9.

Among diversified miners, BHP fell 1.5% to provide biggest drag to the index. Anglo American was down 0.8%, and Glencore 0.2%.

The sub-index for gold stocks retreated for the a day, down 1.4% to the lowest in four weeks, as bullion prices retreat.

Gold Fields was down 1.7%, AngloGold Ashanti 1.1%, Harmony Gold 1.1%, DRDGold 2.4%, and Pan African Resources 1.6%.

Sub-index of platinum stocks also fell for a fourth session, the longest losing streak since April.

Sibanye Stillwater was down 1.7%, Anglo American Platinum 2.5%, Impala Platinum 1.3%, Royal Bafokeng Platinum 2.3%, and Northam Platinum 0.3%.

Sasol slid 10%, the most in two months, a day after flagging that it will swing to a full-year loss amid billions of dollars in writedowns, with the stock getting little support from higher oil prices.

Read: Sasol’s second-half bloodbath

Foreigners remained net sellers for a second day on Tuesday, disposing of R228 million worth of shares, according to index operator JSE.

© 2020 Bloomberg L.P.

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