JSE opens lower‚ tracks global stocks

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JSE1 Independent Newspapers The JSE. Photo: Simphiwe Mbokazi.

The JSE slid at the start of trading on Friday‚ with general mining shares under most pressure‚ amid negative global investor sentiment.

Aquarius Platinum’s (AQP) stock continued its downward spiral‚ hitting a fresh record low after the platinum miner said on Thursday it would close its Everest South mine in SA.

At 09:16 local time‚ the JSE all-share index was down 0.81% to 34‚255.34 points‚ with resources losing 1.67%‚ gold shares shedding 1.24% and platinum counters dropping 1.23%.

Financials dipped 0.23%‚ banking stocks dropped 0.10% and industrials lost 0.40%.

The rand was weaker at 8.38 to the US dollar‚ from 8.31 at the JSE's close on Thursday‚ while gold was quoted at US$1‚561.88 a troy ounce from US$1‚582.52/oz at the JSE's previous close and platinum was at $1‚425.70/oz‚ from $1‚451.20/oz previously.

“The global economic growth concerns are weighing on commodity prices‚ hence the aggressive sell-off in mining counters‚” said Hennie Fourie‚ stockbroker at PSG Konsult.

European stocks started in negative territory on Friday as global growth concerns accelerated and a downgrade of 15 banks by rating agency Moody's added to the gloom.

Global growth concerns triggered a 2% drop in the Dow Jones industrial average on Thursday‚ and crude oil futures fell below $90 a barrel for the first time since October as anaemic manufacturing data from the eurozone and China continued to weigh heavily‚ Dow Jones Newswires reported.

In Europe‚ London’s FTSE was down 1.09%.

In Asia‚ Japan's Nikkei ended the session 0.29% weaker‚ while the Hang Seng index had lost 0.38% by 09:16 local time.

Markets in mainland China were closed for a public holiday.

On the JSE‚ Anglo American (AGL) was down R5.87‚ or 2.12%‚ to R270.53‚ BHP Billiton (BIL) dropped R4‚ or 1.68%‚ to R233.50 and Sasol (SOL) lost R5.16‚ or 1.42%‚ to R357.48.

AngloGold Ashanti (ANG) was down R2.99‚ or 1%‚ to R296.01‚ Gold Fields (GFI) shed R1.71‚ or 1.54%‚ to R109 and Harmony Gold Mining (HAR) slid R1.21‚ or 1.44%‚ to R82.53.

In platinum stocks‚ Lonmin (NHM) was off R2.15‚ or 2.17%‚ to R96.85 and Aquarius Platinum was down 45 cents‚ or 6.43%‚ to R6.55.

Among other miners‚ Kumba Iron Ore (KIO) lost R11.69‚ or 1.99%‚ to R576.30.

In industrials‚ Richemont (CFR) was down 89 cents‚ or 1.88%‚ to R46.44.

In telecoms‚ Vodacom (VOD) gained R1.06‚ or 1.14%‚ to 93.71.

Investec plc (INP) lost 31 cents to R48.40.

In building materials and construction PPC (PPC) was off 50 cents‚ or 1.79%‚ to R27.50. - I-Net Bridge


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