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Gold safrica stocks firm close { June 17 2003 } Original Source Link: (May no longer be active)
http://reuters.com/financeArticle.jhtml?storyID=2942711&newsType=usGoldRpt&menuType=marketshttp://reuters.com/financeArticle.jhtml?storyID=2942711&newsType=usGoldRpt&menuType=markets
Gold producers drive S.African stocks to firm close
Tue June 17, 2003 11:46 AM ET
JOHANNESBURG, June 17 (Reuters) - Rising precious metal prices lifted mining firms like bullion producer Gold Fields on Tuesday, helping to boost the South African stock market more than one percent by the finish, traders said.
"Gold is up about $10 from where we last closed so it's not surprising to see some catch-up," said Kevin Brady of Investec Securities.
The country's third biggest mining firm Harmony Gold leapt 5.6 percent to 110.90 rand and peer Gold Fields gained 3.6 percent to reach 98.55 rand.
AngloGold , which is in takeover talks with Ghana's Ashanti Goldfields in a deal that could make it the world's biggest gold mining firm, zoomed up 5.8 percent to 254.50 rand, drawing strength from a gains in the gold price.
Spot bullion was at $362.95 by 1535 GMT compared to a $359/ounce close in New York and well up from the $353 level seen when Johannesburg equities traders headed home on Friday. South African markets were closed on Monday for a holiday.
Their gains helped to propel the all-share index 1.6 percent or 134.88 points higher to 8,847.75 points. Traders said around 2.5 billion rand worth of shares changed hands.
Gainers outpaced losers 121 to 66 and 79 stocks were unchanged
A steady to softer rand also offered support. At 1535 GMT, the rand was trading at 7.825/dollar , slightly weaker than late Friday's levels, and after dipping about five cents in early trade.
That helped to lift counters like mining giant Anglo American and peer BHP Billiton . Anglo pushed up 2.3 percent to 128.40 rand and the world's biggest diversified miner BHP Billiton climbed 2.4 percent to 44 rand.
But Swiss-based luxury goods firm Richemont seeped lower, losing 1.4 percent to 13.75 rand, and fellow rand-hedge Sasol skidded 2.1 percent to 82.50 rand.
Sasol warned earlier this month it expected a fall in earnings because of a strong rand over the year and a weak performance from its chemicals business.
Consumer inflation data cheered financial stocks despite higher-than-expected figures as analysts said the outlook for further rate cuts in 2003 was still intact.
Statistics South Africa (Stats SA) said the targeted CPIX inflation index -- which excludes mortgage costs -- rose by 7.7 percent in the year to May, slowing from an 8.5 percent increase in April. Consensus forecasts were for a 7.5 percent rise.
Last week, the central bank slashed its key repo rate by an unexpectedly large 150 basis points to 12.0 percent, saying it was confident that inflation would fall within its target range of three to six percent later in 2003.
Financial services group Investec bounded up 6.1 percent to 109 rand and the country's biggest insurer Old Mutual put on 3.5 percent to 11.94 rand.
Mobile phone group MTN nipped up 1.4 percent higher to 14.20 rand. MTN is expected to double its profits when it reports annual results on Thursday, largely thanks to its Nigerian business.
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