South Africa’s gold-stocks gauge rose the most in more than three months on speculation declines in companies’ share prices were overdone.
The FTSE/JSE Africa Gold Mining Index (JGOLD) surged 4.8 percent, the most since Nov. 29 on an intraday basis, to 1,884.77 by 10:02 a.m. in Johannesburg. The six-member measure’s 14-day relative strength index rose above 30 for the first time in 12 days after yesterday reaching 16, the lowest in more than 10 years. A reading below 30 signals to technical analysts a security is undervalued and poised to rebound.
“Gold shares were recently sold off because investors had a bigger risk appetite,” Jean Pierre Verster, an analyst at 36One Asset Management, said by phone from Johannesburg.
AngloGold Ashanti Ltd. (ANG), Africa’s largest producer of the metal, rose 4.8 percent, the most in three months, to 220.75 rand, paring six days of declines. Before today, its RSI had been below 30 since Feb. 21.
Harmony Gold Mining Co. Ltd. (HAR) snapped seven days of decreases, advancing 3.4 percent, the most in more than a month, to 55.20 rand.
The gold-share gauge has lost 17 percent since the start of the year, compared with a 3.2 percent gain in the 165-member FTSE/JSE Africa All-Share Index.
To contact the reporter on this story: Jaco Visser in Johannesburg at firstname.lastname@example.org
To contact the editor responsible for this story: John Viljoen at email@example.com