INDEX RISING
Resources sector may be the one to beat
Mining stocks are set to rise if foreign buying spills over to the JSE
With 2017 only seven working days old, mining stocks have already proven that resources will be the sector to watch on the JSE this year. Miners had another good day on Tuesday, with the resources 10 index jumping more than 3% on firmer copper, zinc and palladium prices. The index has risen 4.04% so far in 2017, beating the all share’s 2.15%. Anglo American and BHP Billiton were star performers on the day, with Anglo American’s share price rocketing more than 7%. BHP Billiton was more than 4% higher. The copper price is up 1% so far this year after rising 17.6% in 2016. But the real performers have been zinc and palladium, rising 3.5% and 10% respectively. Zinc shot up 60% in 2016. This has led analysts to be cautious about the year ahead, with some pullback predicted for mining companies, despite local GDP growth at about 1% — an improvement on 2016. "We estimate only a modest revival in commodity prices," said Momentum Investments head of research Herman van Papendorp. The main ac...
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