Slip in financial shares causes SA stocks fall

SOUTH African stocks ended lower yesterday with financial shares slipping on views the US Federal Reserve would slow down a monetary easing programme that has boosted emerging market assets.

US data released on Thursday painted a positive picture for employment and factory production in the world’s biggest economy, signalling strength that could lead the Federal Reserve to slow down the stimulus.

Losses cut across the benchmark Top-40 Index, which fell 1.54 percent to 36 029.71. The broader All-share index was down 1.45 percent to 40 549.40.

“Banks, retailers and those kinds of stocks are obviously going to come under quite a lot of pressure,” said Bruno van Eck, a senior sales trader at Thebe Stockbroking.

Sanlam fell 4.09 percent to R46.89, while Bidvest ended down 3.37 percent to R244.

Capitec Bank shed 0.51 percent to R184.04, posting its largest weekly loss in 10 months.

The biggest decliner on the Top-40 index was Kumba Iron Ore , which slipped 4.27 percent to R447.50. Stocks that bucked the trend included Harmony Gold, which rose 1.39 percent to R34.30 after the bullion producer said its June quarter gold output was likely to be 10 to 12 percent higher than in the previous quarter. – Reuters