An oversupply in commodities and a strengthening rand makes it unlikely mining shares on the JSE will repeat 2016’s strong performance in 2017. Global commodity prices made a sharp correction from highs in February, led by iron ore tumbling from more than $94 per tonne to $50. It has now stabilised at about $60. "Investors were too excited about last year’s bounce, with the imbalance between mining supply and demand continuing," said Aeon Investment Management portfolio manager Jay Vomacka. The JSE’s resources-10 sector is down 6% so far in 2017, having gained 26.4% in 2016. The platinum index has lost 7.3% and the gold index has dropped 3.15% after gaining 28.8% in the same year. The rand has firmed 7.5% against the dollar so far in 2017, from 11.2% in 2016 after having lost 33.8% in 2015. Despite a lack of profitability among platinum producers, companies have been reluctant to close mines, Bank of America Merrill Lynch analysts said on Monday. The upside for the sector was limite...
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