Stronger rand pum­mels min­ers

Business Day - - MARKETS - Karl Ger­net­zky Mar­kets Writer /with Maarten Mit­tner

A firmer lo­cal cur­rency put rand hedges and min­ers un­der pres­sure on Tues­day, with the JSE track­ing gen­er­ally weaker global mar­kets in the wake of softer com­mod­ity prices.

In­ter­na­tional data were mixed and the rand re­cov­ered some­what af­ter up­beat GDP num­bers out of Ger­many lifted the euro.

The gold in­dex slumped 3.81%, its largest daily de­cline since June, af­ter the re­lease of a se­ries of down­beat Chi­nese eco­nomic data for Oc­to­ber.

Lo­cal re­tail­ers were mixed ahead of the re­lease of Statis­tics SA’s re­tail sales print for Septem­ber on Wed­nes­day. Do­mes­tic eco­nomic growth is seen in many quar­ters to be di­verg­ing from that of the rest of the world, but an­a­lysts have said the global out­look re­mained gen­er­ally sup­port­ive of eq­uity mar­kets.

There was a brighter out­look for eq­uity per­for­mance out­side the US as the global eco­nomic ex­pan­sion fi­nally fil­tered through to the bot­tom lines of firms in Ja­pan, Europe and emerg­ing mar­kets, said Black­Rock global chief in­vest­ment strate­gist Richard Turnill.

The all share closed 0.51% lower at 59‚518.90 points and the blue-chip top 40 lost 0.48%. The gold in­dex shed 3.81%‚ plat­inums 3.55%‚ re­sources 2.31% and gen­eral re­tail­ers 0.44%. Food and drug re­tail­ers gained 0.07% and prop­erty 0.23%.

BHP dropped 2.63% to R263.88 and Anglo Amer­i­can 2.11% to R277.50.

Sa­sol lost 1.36% to R436.67 as oil prices dived near the close.

Con­sol­i­dated In­fra­struc­ture group lost a whop­ping 57.23% to R3.40 af­ter the small-cap com­pany warned that full-year head­line earn­ings per share would drop by 55%.

An­gloGold Ashanti shed 4.22% to R137.45 and Gold Fields dropped 4.01% to R54.75.

Prop­erty group NEPI Rock­cas­tle gained 2.2% to R206.45.

At 5.57pm on Tues­day‚ the Dow was off 0.45% and the Nas­daq 0.43%‚ the FTSE 100 0.19%‚ the CAC 40 0.71% and the DAX 30 0.46%.

At the same time, plat­inum had lost 0.8% to $924.64/oz and gold was flat at $1‚278.27‚ while Brent crude had dropped 2.36% to $61.61 a bar­rel.

The top-40 Alsi fu­tures in­dex fell 0.67% to 53‚605 points.

The num­ber of con­tracts traded was 23‚469, from Mon­day’s 22‚558.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.