Stocks slip a little as retailers stem losses by mines

STOCKS ended flat yesterday, as sharp losses in strike-hit mining companies such as Anglo American Platinum offset big gains by Mr Price and other retailers.

The blue chip Top40 index inched down 0.2 percent to 32 020.55 points and the broader all share index edged down 0.06 percent to 36 247.91.

Retailers, among the top performers on the benchmark index so far this year, gained between 2 percent and 3 percent, powered by optimism about African expansion and as investors bet interest rates were likely to stay low, bolstering consumer spending.

“It looks like interest rates are going to stay at these low levels for much longer than expected,” Deryck Janse van Rensburg at BoE Stockbrokers said. “These companies still deliver good growth and that has also attracted foreign investors who are seeing little growth in markets.”

Mining companies, which recovered in the previous session, lost steam again yesterday, on renewed concerns about the impact of ongoing labour unrest in the industry.

Anglo American Platinum, which is facing an the impact of a wildcat strike at the gold producer’s mines.

Mr Price, which was recently added to the JSE’s blue chip index, jumped by 3.19 percent to R131.20, adding to the almost 60 percent surge notched up so far this year, and stretching the discount clothing retailer’s price to earnings ratio to a lofty 26 times. The Top40 index is trading at just 14 times earnings.

Another clothing retailer, Truworths, closed 2.07 percent higher at R96.29.

A total 160 million shares changed hands, with 170 companies gaining ground and 125 losing value.