Resources, financials drag bourse down Graph of the day

STOCKS were floored yesterday after resources and financials weighed on the bourse.

The benchmark Top40 index ended 0.51 percent lower at 44 025.81 points and the all share index, the broadest measure of the stock market performance, lost 0.39 percent to 49 528.13.

“China’s situation is still the big factor driving metals prices,” Afrifocus Securities portfolio manager Ferdi Heyneke said, referring to weaker growth in the world’s second largest economy.

After sharp falls this year, metals prices seem to be stabilising according to Heyneke, but local producers have rising electricity and labour costs putting further pressure on their margins.

Anglo American Platinum was the biggest loser on the blue chip Top40 index, shedding 5.67 percent to close at R305.08. The platinum producer’s parent, Anglo American, fell 2.75 percent to R153.05.

Shares in FirstRand, the country’s largest banking group, were down 2.61 percent at R50.73. Chief executive Johan Burger said profits would be slower in 2016 after reporting a 13 percent rise in annual profit.

Advancers included British American Tobacco, which added 0.21 percent to close at R728.04, and Coal of Africa, which gained by 4.35 percent to R0.72.

FTSE/JSE Africa Index Series