The JSE closed weaker on Monday amid some consolidation after last week’s strong showing‚ with gold miners the only index to finish in positive territory (0.45%).
The bourse gave up 0.44% to close at 35‚417 points at 5pm local time‚ after offshore markets also slipped in the wake of disappointing economic data prints from China and Japan.
“The JSE has been gyrating in a narrow range today and it has been a mixed bag. Kumba drew attention being ex-dividend and down 5.5% and Exxaro rallied after its latest decline. There has been a bit of interest in gold shares‚ but it has not been a fun day today. The US is a bit down and that is seen percolating through to our markets‚” said Mark Wilkes‚ trader at Global Trader.
Preliminary data released overnight showed that Japan’s economy grew an annualised 1.4% in the April to June quarter‚ compared with expectations for a 2.7% increase. This is the latest sign of a slowdown in Asian economies‚ after China posted disappointing industrial and trade data last week.
At 4.52pm local time the Dow Jones Industrial Average was 0.50% softer and the FTSE 100 index was last seen 0.37% weaker.
Locally Kumba Iron Ore (KIO) shed R30.50 or 5.57% to R517.00‚ while Exxaro (EXX) added R2.57‚ or 1.42%‚ to R183.69.
Mining giant Anglo American (AGL) closed R3.26‚ or 1.26%‚ lower at R256.24. London’s The Daily Telegraph on Monday reported that Cynthia Carroll‚ chief executive of Anglo American PLC‚ was under attack from shareholders who had demanded an immediate change of management because they had lost confidence in her strategy and leadership.
Construction group Group Five (GRF)‚ closed unchanged at R22.85. The company on Monday said headline earnings per share for continuing operations for the year ended June 2012 dropped 64.4% to R1.80 from the corresponding period in 2011.
Telkom (TKG) shed 17 cents to R19.19. Ratings agency Moody’s warned on Monday that the Competition Tribunal’s R449m fine imposed on Telkom for abusing its dominance in the telecommunications market was credit negative‚ as it would reduce cash flow and increase leverage for fiscal years ending March 2013 and 2014.
Engineering and construction company Bell Equipment (BEL) closed 50 cents‚ or 2.56%‚ lower at R19.00. The company on Monday reported a rise in diluted headline earnings per share to 141 cents for the six months ended June 2012 from 105 cents a year ago. - I-Net Bridge