S.Africa stocks sour as gold companies hit again

JOHANNESBURG (Reuters) - South African stocks ended a touch lower on Friday, as another battering of gold producers such as Gold Fields outweighed a rise in banks and retailers.

Brewer SABMiller and other stocks seen as defensive were lifted after U.S. economic data came in weaker than expected, heightening concerns about the strength of the recovery in the world's top economy.

Gold miners and other resource producers have been hammered in recent weeks, following a sharp sell-off in commodity prices.

"Financials seem to be something you can put a bet on," said Nick Kunze, director at brokerage Skycastle Investments in Johannesburg.

"Gold and platinum and these other spot miners, it is a bit like trying to shoot a moving target. We don't know what is going to happen. At least with the banks you have got a rough idea of where things are going to be."

The benchmark Top-40 index fell 0.17 percent to 34,339.26, the broader All-Share index edged down 0.12 percent to 39,082.42.

The Top-40 is just barely below positive territory for the year, down 1.06 percent.

Gold Fields,, South Africa's second-largest gold miner by value, slid 3.3 percent to 67.85 rand.

Industry leader AngloGold Ashanti dropped 2 percent to 173.55 rand.

Nedbank, South Africa's fourth-largest lender, rose 1 percent to 189.93.

Defensive stocks, or shares less sensitive to the swings of the global economic cycle, rose after data showed the world's top economy picked up in the first three months of the year, but at a slower pace than economists had expected.

That helped shares of brewer SABMiller, said Skycastle's Kunze.

"It tends to be quite defensive in times of uncertainty and we just had some reasonably weak GDP numbers out of America so people are a little bit uncertain."

British American Tobacco, another defensive stock, rose 1 percent to 507.99 rand.

Trade was relatively active, with 174 million shares changing hands according to preliminary data. A total of 171 shares advanced, 121 declined and 61 were unchanged.

Source: http://news.yahoo.com/africa-stocks-sour-gold-companies-hit-again-160129775.html

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