Stocks book worst week amid wave of strikes
THE JSE fell on Friday, booking its steepest weekly fall in more than two months as investors remained skittish about labour strikes rattling the economy.
Workers in the gold-mining industry are set to strike for higher pay from Tuesday, inflicting more damage on an industry that has produced a third of the bullion ever pulled from the earth but is now in decline.
Emerging-market assets were being sold off for much of this week on fears of possible Western military action in Syria.
The JSE Top 40 index fell 0.66% to 37 864. It was off 2.1% for the week, down 2.7% for August. The All Share index gave up 0.47% to 42 228. The index was down 1.8% for the week, down 2.3% for August. But gold shares, which were hammered in recent weeks, recouped some losses. AngloGold Ashanti was up 4.72% and Gold Fields gained 2.69%.
Anglo American was down 2.83% to R235.50 and Impala Platinum lost 2.16% to R113.50.
Richemont, whose share price often moves inversely to the rand because it reports in Swiss francs, fell 2.32% to R97.14. The rand firmed nearly 1% against the dollar in late afternoon deals on Friday.
Woolworths was 4.94% higher at R68.21, extending gains to the second day running after the highend food retailer posted a rise in full-year profit of nearly a third.
Trade was robust, with 187 million shares changing hands. Decliners beat advancers 171 to 122, with 61 shares unchanged.
European stocks closed lower on Friday, the last session of August, with London’s FTSE 100 sliding 1.08% to 6.413. Frankfurt’s DAX 30 fell 1.12% to 8 103, and the CAC 40 in Paris dropped 1.32% to 3 934.
British stocks dropped after parliament rejected the idea of taking part in any US-led military action against Syria. Energy shares knocked some 13 points off the FTSE 100 as the vote reduced chances of an imminent Western strike that would hurt supply and raise oil prices.
Among brighter spots, telecoms added almost three points to the index, remaining buoyant after Vodafone confirmed on Thursday it was in talks to sell its stake in its US joint venture with Verizon.
US stocks fell, setting the S&P 500 index on track for the biggest monthly drop in over a year. Even though the threat of a military strike on Syria faded slightly, volatility in stocks increased.
US markets will be closed tomorrow, Labour Day. The CBOE Volatility index, VIX, Wall Street’s “fear gauge”, rose 3.2% to 17.35. The S&P 500 stock index was down 1.7% for the week and down 3% for the month, its worst performance since May last year.
The easing of tensions over Syria sent Brent crude oil to near $115 a barrel, off highs of $117 set earlier this week when military action seemed imminent.
Gold was steady at $1 398/oz, platinum was unchanged at $1 514/oz and palladium was at $725/oz. —