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.