Globals weigh on bourse

THE JSE failed to sustain its previous gains on Friday, taking its cue from a sombre mood on global markets.

At 5pm, the all share index was down 0.27% with the blue-chip top 40 index dipping 0.40%.

The R9.8-trillion index has lost nearly 1.5% since its record high of 51,397 points the previous Friday. All the major indices closed in negative territory, except the gold mining index, which gained 0.49%, helped by a firmer gold price, and the resources index, which finished flat.

The biggest declines were recorded in the platinum sector, bringing the index’s total losses on the week to more than 4% despite the resolution of the five-month strike.

Earlier last week, employees of Anglo American Platinum (AMS), Impala Platinum (IMP), and Lonmin (LON) returned to work following the signing of agreements with the Association of Mineworkers and Construction Union.

Among individual shares on the JSE, Lonmin (LON) dropped 2.09% to R42.72. The miner announced on Friday that one of its workers in Marikana had died following an epileptic fit the previous day.

Esor (ESR) lost 2.78% to 35c after announcing changes to the group’s management structure. The company said group CEO Bernie Krone would assume the role of group chairman, replacing Dave Thompson‚ who is set to retire from the company.

Argent Industrial (ART) gave back 1.05% to R5.64 after reporting a full-year net loss of R193.05m versus a profit of R76.27m in the previous comparable period.

Bargain hunters pushed African Bank’s (ABL) share price up 10.93% to R6.80 after it shed more than 8% on Thursday to a 12-month low.

Lingering concerns over US economic growth weighed on major stock markets on Friday, with the Dow Jones industrial slipping 0.12% by 5.16pm local time. A Dow Jones Newswires report showed stocks had stalled near record highs, as mixed readings on economic output had some investors betting that corporate profits would continue to show lacklustre growth.

That was after disappointing readings on US first-quarter economic growth and May consumer spending. Leading European shares pulled in opposite directions as investors digested mixed economic data out of France and the UK.

At 5.17pm, London’s FTSE 100 was 0.38% firmer after UK consumer confidence reached positive territory this month for the first time since March 2005.