Shares shrug good news on deficit, follow Implats down

Reuters STOCKS edged down yesterday, as shares of Impala Platinum (Implats) fell after the mining company said its April deliveries would be cut in half by a strike at its main mine.

South Africa’s announcement of a lower-than-expected 2012/13 budget deficit had little direct effect on the stock market, traders said, adding that many investors were taking a conservative tack after the market’s recent run.

Local stocks, which hit record highs earlier this month, would need a further catalyst to move higher, market players have said.

“I think the market is going to latch on to whatever negative news comes out now and take a bit of profits,” Mitchell Gannaway of Thebe Stockbroking said. “It doesn’t matter what it is.” The benchmark Top40 index declined 0.49 percent to 30 288.89 points. The broader all share index lost 0.4 percent to 34 006.52 points.

Implats slid 1.25 percent on the day to close at R161.01. Implats said its April deliveries would be halved by a strike at its main Rustenburg mine. The mining house has lost at least R1.2 billion in revenue

South Africa projected a slightly-better-than-expected budget deficit yesterday. The finance minister said spending would exceed revenues by R153bn, or 4.6 percent of gross domestic product.

Massmart slid 0.57 percent to end at R181.51. The retailer reported a 19 percent rise in first-half earnings yesterday, helped by favourable currency swings as higher costs and discounts weighed.

Trade was relatively active yesterday, with 195 million shares changing hands on the exchange, compared with last year’s daily average of 256 million shares.