Some mining stocks, which have been feeding well off the rand’s weakness, got an unexpected windfall yesterday with the Reserve Bank’s decision to increase the repo rate.
Gold stocks responded well after governor Gill Marcus announced the increase. AngloGold Ashanti shares closed 6.92 percent up at R163.10 and Harmony Gold jumped 4.33 percent to R32.30. Sibanye Gold ended 2.50 percent up at R15.17.
Stocks of platinum majors, which are in the midst of a strike, did not move much after the hike. Marcus said the strike was likely to reduce exports, hindering the current account adjustment further, depending on its duration. – Dineo Faku