SA stocks lower as US scale-back fears grow

SOUTH African stocks edged down yesterday, falling for the fourth straight trading day as concern intensified the US Federal Reserve could start scaling back its stimulus as early as next week.

Shares of blue chip companies such as Impala Platinum and Assore were among the decliners, a day after the Johannesburg bourse suffered its biggest daily drop in almost six months and ahead of a long week- end that includes Monday’s national holiday.

Investors are worried the US Federal Reserve will begin scaling back, or tapering, its massive bond- buying stimulus programme that has underpinned equities in emerging markets such as South Africa.

“There is a bit of holiday selling coming in now, we have the Fed meeting next week, so the talk of tapering seems to be the word of the day,” said Brandon Sacks, a sales trader at Avior Research in Johannesburg.

“I think guys are sitting back waiting for that to happen; yesterday was the start of it.”

The benchmark Top-40 index ended the session 0.1 percent lower at 38 537.55, while the broader All-Share index slipped 0.15 percent at 43 185.73.

Impala Platinum fell 2 percent to R109.19 while Assore dropped 3.3 percent to R342.27. – Reuters