Bourse into the red again

THE JSE closed in the red for the second consecutive day on Tuesday but recovered from weaker levels during the session as platinums retreated‚ while resources turned positive during the afternoon.

The resources index recovered on the day‚ albeit marginally‚ as global mining houses attracted buyers on improved Chinese data after being sold off heavily on Monday. Lower global markets also continued to place a damper on trading.

After trading below 50‚000 points for the first time since July at midday on Tuesday the JSE all share closed 0.85% lower at 50‚053.91 points‚ with the blue-chip top 40 losing 0.82%. Resources added 0.18%‚ while platinums lost 1.71%.

Industrials were down 1.22%‚ with banks losing 1.14%‚ and financials 0.96% lower. The gold index retreated 0.53%.

Head of Beta Solutions at Nedbank Capital Nerina Visser said there was some nervousness in the market following the losses on Monday. “But on a whole the all share has lost 1.7% for the month so far which is clearly not that bad.”

She said some problem areas remained‚ notably resources‚ which were down 5% in September. “But we had some recovery today as the Chinese numbers turned out better than expected.” The market was also not very enthusiastic about the nuclear deal signed between SA and Russia’s Rosatom state nuclear energy corporation‚ due to the lack of detail on how the deal would be financed.

“It could affect the rand at some point,” Ms Visser said.

Glencore Xstrata (GLN) led resources higher, closing 1.34% up at R62.89, with BHP Billiton gaining 0.70% to R317.52.

Other resources stocks did not fare that well, with Kumba Iron Ore (KIO) down 0.86% to R267.68 and Sasol (SOL) slipping 0.68% to R616.40 on the lower oil price.

Diversified resources group Pallinghurst (PGL) was 3.62% up at R4.87. Among rand hedges British American Tobacco (BTI) was down 1.71% to R645.86.

Net1 UEPS Technologies (NT1) lost 3.86% to R143.15.

Nedbank (NED) closed 2.05% lower at R219 with Standard Bank (SBK) losing 1.68% to R133.71. Capitec (CPI) was down 1.76% to R235.50.

Pick n Pay (PIK) was the biggest loser among retailers, closing 4.01% off at R53.79.

Telkom (TKG) was sold off heavily again, closing 3.27% lower at R49.99. Naspers (NPN) ended the day 2.35% lower at R1,268.50. Times Media Group (TMG) gained 1.20% to R21 after reporting annual results showing it had swung back into profit from a loss the previous year. Staff Writer