The South African share market slipped to its lowest level in just over two weeks on Thursday‚ tracking weaker global markets.
At 12.16pm‚ the all-share index was 0.56% lower at 37‚034.86 points‚ with the top 40 shedding 0.60% to 32‚844.60. Gold and platinum stocks gave up 1.30% and 1.29%‚ respectively‚ while banks dropped 1.14%.
“Global risk-off trade continues to dominate in the aftermath of the US elections‚” said Mohammed Nalla‚ analyst at Nedbank Capital. “That negative trend is reflected in the rand weakness‚ with offshore investors exiting their positions on SA assets.”
The rand slid to R8.95 to the US dollar during the morning before recovering slightly to about R8.91.
The US fiscal cliff of spending cuts and tax hikes‚ due to take effect in January next year‚ remains one of the key investor concerns‚ Nalla said.
Leading European shares were weaker at noon‚ with London’s FTSE 100 down 0.37%.
Among individual shares‚ Exxaro (EXX) lost 1.58% to R163.63‚ extending its slide to over 7% this week after Kumba Iron Ore’s (KIO) downbeat trading update. Exxaro has a 20% interest in Kumba’s subsidiary‚ Sishen Iron Ore Company.
Northam Platinum (NHM) was down 2.60% to R31.87.
Telkom (TKG) gave up 1.46% to R16.20 and FirstRand (FSR) shed 1.98% to R29.77. - I-Net Bridge