Platinum shares take a hammering after news of drop in car sales in India and China

JOHANNESBURG-SA (Sept 11) – Platinum stocks eased on Tuesday as news of the bleak car sales from India and China weighed heavily on platinum shares.

Impala Platinum led the rout, declining 5.97 percent to R81.05 a share, followed by Anglo American Platinum with 3.66 percent lower at R839.81. Sibanye-Stillwater fell 2.66 percent to R17.20, and Northam Platinum traded 3.54 percent  weaker at R72.74.

Anchor Capital investment analyst Seleho Tsatsi said that news of the 41 percent decline in India’s car sales for August was one of the factors that contributed to the fall in the shares.

“Autocatalysts account for about 40 percent of platinum demand and more than 80 percent of palladium and rhodium demand. The decline of car sales in China by close to 10 percent and India by 41 percent is thus obviously negative for demand,” said Tsatsi.

India, one of the world’s promising car industries owing to its growing middle class, recorded the worst-ever monthly fall in car sales in August.

BusinessReport