Commodities see JSE drop

A BIG drop in mining stocks weighed heavily on the JSE yesterday. The gold, platinum and resource gauges all suffered big losses, down 4.21%, 2.88% and 2.38% respectively, amid concern about local labour issues and slower global growth prospects than previously expected owing to weaker global purchasing managers index (PMI) data.

“Let this trading day just end … it has been a bloodbath on the local bourse. We have seen a massive sell off in our mining and banking shares due to concern about slower than expected global growth after recently released global PMI numbers,” Devin Shutte, market analyst at stockbrokerage Newstrading, said. “Investors have taken their foot off the pedal with regards to buying commodities as the future looks more murky than previously anticipated after the PMI numbers,” he said.

At 5pm the JSE all share index closed 1.57% lower at 39,414.34 points, with the bluechip top 40 index giving back 1.72%. Banks were down 1.45%.

European markets were also trading in the red with London’s FTSE seen 0.84% lower at 5pm local time, with investors awaiting monetary policy announcements by the European Central Bank and the Bank of England today.

On the local front, stock movers included resource conglomerate Anglo American (AGL) closing 1.67% softer at R230.09, and rival BHP Billiton (BIL) shedding 2.51% to close at R263.35.

International energy and chemical company Sasol (SOL) gave back 1.64% to R401.09.

Among bullion counters, Gold Fields (GFI) tumbled 5.30% to R64.91, Harmony (HAR) plummeted 5.58% to R55 and newcomer Sibanye (SGL) dropped 4.84% to R12.59.

Platinum players Impala Platinum (IMP) fell 3.23% to close at R129.50 and Aquarius (AQP) tumbled 6.62% to R6.49.

Kumba Iron Ore (KIO) slumped 4.47% to R470 and Exxaro (EXX) retreated 3.94% to R157.50. In the banking sector RMB (RMH) was off 2.66% to R41.65, Nedbank (NED) gave up 1.68% to R187.10 and Standard Bank (SBK) relinquished 1.63% to R117.50.

Among financials Sanlam (SLM) dropped 4% to R46.03 and Old Mutual (OML) was down 2.83% to R27.78.

South African near-dated futures fell more than 2% yesterday, dragged down by negative global market sentiment.

The near-dated Alsi ended 2.09% lower at 34,903 points.

The total number of contracts that changed hands yesterday was 47,460, up from 37,076 on Tuesday. Staff Writer