Assore Leads African Iron-Ore Stocks Higher: Johannesburg MoverJaco Visser
Assore Ltd., the co-owner of South African iron-ore and manganese producer Assmang Ltd., led its peers higher in Johannesburg trading on speculation recent declines were overdone.
Assore jumped 7 percent, the biggest one-day advance in 14 months, to close at 293 rand. African Rainbow Minerals Ltd., co-owner of Assmang, rose for the first time in three days, while Kumba Iron Ore Ltd. had its first gain in five days.
“Iron-ore stocks are having a relief day,” Ryan Wibberley, a trader at Investec Asset Management, said by phone from Cape Town. “They’re rallying from an oversold position.”
Kumba’s 14-day relative strength index was below 30 for a fifth day, while African Rainbow Minerals was at 29.8. A reading below 30 signals to technical analysts that a security is undervalued and poised to rebound. Assore’s RSI rose above 30 for the first time in seven days.
Iron-ore stocks also increased in Australia. Atlas Iron Ltd., based in Perth, surged 9.2 percent, the most in almost four months, to A$1.125 in Sydney. Fortescue Metals Group rose 7.3 percent, the most in more than six months, to A$3.84, paring its decline this year to 17 percent.
“The iron-ore sector has taken a beating lately,” Wibberley said.
Kumba, the owner of Africa’s biggest iron-ore mine, advanced 1.9 percent to close at 451 rand. African Rainbow Minerals increased 1.2 percent to 172.80 rand.