Stocks fall as labour unrest effect hits mining firms

STOCKS slipped yesterday, tracking global equities on worries about slowing growth in China and Europe, while concerns about the impact of labour unrest hit platinum firms Lonmin and Anglo American Platinum.

The all share index retreated 0.28 percent to 36 359.98 points and the benchmark Top40 index of blue chips lost 0.35 percent to 32 081.36 points.

The stock market largely shrugged off the Reserve Bank’s widely expected decision to keep its benchmark rate steady at 5 percent.

Nagging concern about ongoing strikes in the platinum industry continued to undermine investor sentiment.

News of slowing economic growth in China, worsening business conditions in Europe and weak manufacturing activity in the US added to the bearish mood on the JSE.

“We have seen agreements being signed and all sorts of things, but the next thing you hear is a strike in another mine,” Afrifocus Securities portfolio manager Ferdi Heyneke said.

Lonmin slumped 6.31 percent to R82.26, as investors worried about the impact on badly hit by the illegal strike at its Rustenburg operations.

Amplat lost 1.32 percent to R449 after giving more than 80 percent of its workers in Rustenburg until a Thursday night shift to show up at work or face consequences.

Telkom gave up 5.51 percent to close at R19.37 after warning that first-half profit fell by at least 65 percent.

Steinhoff declined 3.24 percent to R26.25 after the furniture maker said it would issue

400m (R4.3 billion) convertible bonds. Boosted by its inclusion to the JSE’s Top40 index from next week, Mr Price jumped 4.8 percent to R125.