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Gold producers drag South African stocks lower
Gold bars are stacked at a safe deposit room of the ProAurum gold house in Munich, March 6, 2014. PHOTO BY REUTERS/Michael Dalder
03/01/2015
JOHANNESBURG (Reuters) - South African stocks fell in thin trade on Friday as a weaker gold price dragged down bullion producers AngloGold Ashanti and Sibanye Gold.
Africa's largest producer AngloGold Ashanti topped decliners on the benchmark Top-40 index, falling the most in three weeks to shed 3.2 percent to 98.41 rand. The stock fell about 17 percent last year as the gold price was eroded.
Smaller rival Sibanye Gold ended 3.6 percent lower on the day, though it jumped about 80 percent in 2014.
Spot gold fell more than 1 percent, hit by a stronger dollar and falling oil markets.
Higher U.S. interest rates - expected this year - weigh on non-interest-bearing bullion, while a stronger dollar makes gold more expensive for holders of foreign currencies.
The benchmark Top-40 index lost 0.62 percent to 43,696 while the broader All-share index fell 0.51 percent to 49,518.
The Top 40 advanced 6 percent last year compared to a 18 percent rise in 2013.
Among Friday's gainers was Kumba Iron Ore which rose almost 3 percent on a rally in iron ore prices. Kumba, Africa's largest producer of the steelmaking ingredient, shed almost half its value last year as iron ore prices tumbled.
Trade was thin, with just 56 million shares changing hands and with decliners edging out gainers 147 to 127.
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