Exxaro recovers after five-day rout

031110 A new study has found that SA coal reserves have been significantly downsized since 2003.photo by Simphiwe Mbokazi 453

031110 A new study has found that SA coal reserves have been significantly downsized since 2003.photo by Simphiwe Mbokazi 453

Published Jul 13, 2012

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Shares of Exxaro Resources rise for the first time in six sessions, adding 1.9 percent to 172.20 rand as investors bet the diversified miner had fallen too far in its recent rout.

Shares of Exxaro tumbled nearly 18 percent in the last five sessions, hit by concerns about slowing Chinese demand for commodities such as iron ore, used to make steel, and mineral sands, used to make pigment, and coal.

Exxaro has a 20 percent stake in South Africa's Kumba Iron Ore and a nearly 40 percent stake in New York-listed pigment maker Tronox Inc. Exxaro is also a major coal producer.

Technical factors had also shown that Exxaro may have been oversold: its 14-day RSI, a measure of momentum watched by technical analysts, showed it touched the oversold level of 30 on Thursday. - Reuters

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