Exxaro Snaps Biggest 5-Day Slump Since 2008: Johannesburg Mover
Exxaro Resources Ltd. (EXX), part-owner of South Africa’s biggest iron-ore mine, snapped the biggest five- day drop since 2008 as metals gained on speculation China may take more steps to boost the economy.
The stock rose for the first time in six days, advancing 2.7 percent to 173.50 rand by the close in Johannesburg. Exxaro slumped 18 percent in the previous five days to July 12, the most since November 2008 and sending the 14-day relative strength index, which shows how rapidly prices advanced or dropped during a specified time period, to 30.1 yesterday. A reading of 30 or below signals to some investors that shares are set to increase.
“It was really just very heavily oversold,” Clinton Duncan, an analyst with Johannesburg-based Avior Research Ltd., said by phone. Speculation that China may step up stimulus efforts also boosted mining stocks, he said.
Copper gained for a third day as a report showing China’s economic growth slowed to a three-year low boosted speculation policy makers may roll out additional stimulus measures.
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