March 7 (Bloomberg) -- South Africa’s gold-stocks gauge rose the most in more than three years on speculation declines in companies’ share prices were overdone.
The FTSE/JSE Africa Gold Mining Index surged 6.8 percent, the most since Nov. 4, 2009, on an intraday basis, to 1,922.22 by 2:38 p.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., Africa’s largest producer of the metal, rose 6.3 percent, the most in more than five months, to 224 rand, paring six days of declines. Before today, its RSI had been below 30 since Feb. 21.
Harmony Gold Mining Co. snapped seven days of decreases, advancing 5.9 percent, the most in more than a month, to 56.52 rand.
Sibanye Gold Ltd., the miner spun off from Gold Fields Ltd., jumped as much as 11 percent and was 10 percent higher at 14.54 rand, giving the company a market value of 10.6 billion rand ($1.2 billion). Gold Fields advanced 7.2 percent to 74.44 rand.
The gold-share gauge has lost 15 percent since the start of the year, compared with a 3.6 percent gain in the 165-member FTSE/JSE Africa All-Share Index.
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