Mining shares drag JSE down in thin trade

THE JSE ended slightly weaker yesterday as mining shares dragged the overall market down‚ with industrials failing to build on earlier momentum in thin trade.

Volumes were low‚ at R9-billion‚ with US and UK markets closed for holidays – Memorial Day in the US and the UK spring bank holiday.

French and German markets were lower as the Italian political crisis intensified.

Oil prices continued to fall. Recent comments from Russian and Saudi officials on readiness to ease their restrictions on production as soon as next month appeared to be the main factor forcing oil prices lower‚ FxPro analysts said.

The JSE all-share closed 0.11% lower at 56 857.2, but the Top 40 gained 0.02%.

The platinum index dropped 2.35%‚ gold 1.85%‚ general retailers 0.65%‚ property 0.5% and resources 0.45%. Food and drug retailers rose 0.24% and industrials 0.17%.

Sibanye-Stillwater lost 1.84% to R7.45 and Lonmin 5.9% to R6.70.

Steinhoff Africa Retail slumped 5.59% to R16.90‚ ahead of the release today of its interim results to end-March. The company said on Friday it expected earnings to plunge 52%.

Telkom shed 3.6% to R51.70‚ after saying earlier it had grown overall revenue by 0.1% to R41-billion in the year to end-March‚ but operating profit dropped 6.5%.

The rand was lifted slightly by S&P Global Ratings’s decision to leave South Africa’s debt rating unchanged on Friday‚ as expected‚ while much of the global focus was on a wobbling euro.

S&P cited tentative economic growth and the government’s rising debt burden as factors mitigating against an improved rating. The outlook remains stable.

In response‚ the national Treasury said it would talk to S&P about areas of concern.

Domestic bonds found support from the firmer rand‚ having been back in favour with global investors last week.

Foreigners purchased R3-billion of domestic government debt last week‚ JSE market statistics showed.

The benchmark R186 government bond was last bid at 8.435% from 8.45%.

The Top 40 Alsi futures lost 0.12% to 50 761 points. Contracts traded came to 10 796. – BusinessLIVE