JSE dips on weaker mining shares

The JSE ended Monday slightly weaker as mining shares dragged the overall market down, with industrials failing to build on earlier momentum in thin trade.

Volumes were low with US and UK markets closed for holidays. French and German markets were lower as the Italian political crisis intensified.

Oil prices continued to fall, with Brent crude oil 1.27% lower at $75.16 a barrel. Recent comments from Russian and Saudi officials on the readiness to ease their restrictions on production as soon as June appeared to be the main factor forcing oil prices lower, FxPro analysts said.

The all share closed 0.11% lower at 56,857.20, but the top 40 gained 0.02%. The platinum index dropped 2.35%, gold 1.85%, general retailers 0.65%, property 0.5% and resources 0.45%. Food and drug retailers added 0.24% and industrials 0.17%.

Sibanye-Stillwater lost 1.84% to R7.45 and Lonmin 5.9% to R6.70.

Steinhoff Africa Retail slumped 5.59% to R16.90, ahead of the release of its interim results to end-March on Tuesday. The company said on Friday it expected earnings to plunge 52%.

Telkom shed 3.6% to R51.70, after saying earlier it grew overall revenue 0.1% to R41bn in the year to end-March but operating profit dropped 6.5%.

The rand was lifted slightly by S&P Global Ratings’s decision to leave SA’s debt rating unchanged, as expected, on Friday, while much of the global focus was on a wobbling euro. The euro was last at $1.1626 from $1.1687.

The rand was at R12.4382 to the dollar from R12.4897.

S&P kept its rating on SA unchanged, citing tentative economic growth and the government’s rising debt burden as factors militating against an improved rating. The outlook remains stable. In response, the Treasury said it would talk to S&P about its areas of concern.

Local bonds found support from the firmer rand, having been back in favour with global investors last week. Foreigners purchased a net R3bn of local government debt last week, according to JSE market statistics. The benchmark R186 government bond was last bid at 8.435% from 8.45%.

The top 40 Alsi futures lost 0.12% to 50,761 points. The number of contracts traded was 10,796 compared with Friday’s 17,901.