Miners lead JSE losses

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Independent Newspapers

The JSE. Photo: Simphiwe Mbokazi.

The JSE extended its losses at noon on Monday‚ with the downside led by general mining shares‚ while European stocks fell after a positive open‚ on continued global growth concerns.

At 12:22 local time‚ the JSE all-share index was down 0.63% at 34‚011.76 points‚ with resources losing 1.06%‚ gold shares shedding 1.19% and platinum counters down 1.16%.

Financials were flat (0.01%)‚ banking stocks gained 0.43% and industrials slid 0.62%.

The rand was trading at 8.27 to the US dollar‚ from 8.25 at the JSE’s close on Friday‚ while gold changed hands at US$1‚582.67 a troy ounce from US$1‚588.24/oz at the JSE’s previous close and platinum was quoted at $1‚441.70/oz‚ from $1‚455.50/oz previously.

“The Spanish bond yields are back above the 7% mark‚ while the US dollar has strengthened‚” said Reuben Beelders‚ portfolio manager at Gryphon Asset Management. “It is a sign of risk-off environment. The global economic growth forecast has steadily been revised downwards‚ which does not bode well for corporate profit.”

In Europe‚ London’s FTSE 100 index was down 0.43% at noon SA time.

Investors were sceptical that Monday's eurogroup meeting would yield any real progress‚ Dow Jones Newswires reported.

In Asia‚ Japan’s Nikkei average ended the session 1.37% in the red‚ while the Hang Seng index was down 1.88% by the close.

Investors are also looking ahead to a slew of Chinese economic data out this week‚ including second-quarter growth‚ to gauge whether China is heading towards a hard or a soft landing.

On the JSE‚ Anglo American (AGL) was down R3.94‚ or 1.46%‚ to R265.90‚ BHP Billiton (BIL) lost R2.12 to R234.60 and Sasol (SOL) slipped 61 cents to R342.61.

AngloGold Ashanti (ANG) slid R5.54‚ or 2%‚ to R271.39 and Harmony Gold Mining (HAR) was down 73 cents to R75.61.

In platinum stocks‚ Lonmin (LON) lost R3.33‚ or 3.54%‚ to R90.67 and Aquarius Platinum (AQP) gave up 38 cents‚ or 6.33%‚ to R5.62‚ an all-time low for the share.

Among other miners‚ Exxaro (EXX) shed R9.45‚ or 4.73%‚ to R190.25 and Kumba Iron Ore (KIO) slid R11.99‚ or 2.14%‚ to R547.51.

The selloff in Exxaro was triggered by Kumba Iron Ore’s (KIO) trading update released on Friday‚ Drikus Combrinck‚ portfolio manager at PSG Konsult‚ said.

The Anglo American-owned miner warned of lower interim profits because of reduced iron ore export prices.

Exxaro has a 20% interest in Kumba subsidiary‚ Sishen Iron Ore Company‚ where the bulk of the company's annual production is generated.

Kumba said its headline and basic earnings for the six months to end-June were expected to be between R7.1bn (R22‚10 per share) and R7.5bn (R23.40 per share).

In industrials‚ Richemont (CFR) gave up R1.19‚ or 2.64%‚ to R43.94.

Among banks and financials‚ Abil (ABL) was down 74 cents‚ or 2.02%‚ to R35.96 and Santam (SNT) lost R2.82‚ or 1.70%‚ to R163.50. - I-Net Bridge


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