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South African Stocks Fall Hard On Drop In Gold Shares
An electronic board displaying movements in major indices is seen at Johannesburg stock exchange in Sandton September 23, 2008. PHOTO BY REUTERS/Siphiwe Sibeko.
28/08/2013
JOHANNESBURG (Reuters) - South African stocks fell sharply on Wednesday with gold miners among the worst performers as workers in the sector geared up for a strike over higher pay that could slam production.
A sell-off in other emerging markets ahead of possible Western military action against Syria added to the bearish sentiment.
The benchmark Top-40 index fell 1.86 percent to 38,001.03 and the broader All-share index lost 1.79 percent to 42,311.00.
"There's negative sentiment towards emerging markets on the back of this Syrian scenario and a flow of money into more stable markets like the United States," said Bruno van Eck, a trader at Thebe Securities.
Gold producers are preparing for bruising strikes that could start as early as Sunday, with some companies planning for stoppages of up to three months in a high-stakes fight between capital and labour in Africa's biggest economy.
Shares in AngloGold Ashanti dropped 6.07 percent to 144.80 rand and Gold Fields slumped 4.82 percent to 56.97 rand.
Elsewhere, Discovery Holdings plunged 9.09 percent to 88.41 rand, with shares logging their biggest daily decline in more than eight years after the insurer flagged as much as a 10 percent fall in full-year profit.
On the upside, Steinhoff International rallied 3.88 percent to 28.88 rand after the furniture maker and retailer said full-year profit likely rose as much as 25 percent.
Energy firm Sasol inched up 0.68 percent to 484.60 rand as the price of crude oil cruised higher.
Trade was relatively robust, with 183 million shares changing hands, according to preliminary bourse data. Decliners outnumbered advancers, 210 to 81, with 56 shares unchanged.
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