Mondi weighs on JSE as profit declines

Top movers Graph of the day

FTSE/JSE Africa Index Series

STOCKS declined yesterday, led lower by Mondi Group.

The benchmark JSE Top40 index dropped 0.31 percent to 47 488.45 points, while the all share index retreated 0.26 percent to 54 114 points.

was down 2.39 percent to R344.78 after its first-quarter underlying operating profit fell 6 percent and the company announced plans for maintenance that would wipe about 80 million (about R1.17 billion) from 2017 operating profit.

“The market was expecting a lot better trading update so it was disappointed in the numbers,” said Cratos Capital equities trader, Greg

Mondi Group

Davies, yesterday.

Meanwhile, US and European stocks fell yesterday as political uncertainty in the US sent investors in search of safer investments like gold and the Japanese yen.

Investors were concerned about developments relating to the firing of FBI director James Comey late on Tuesday by US President Donald Trump.

The US benchmark Standard & Poor’s 500 (S&P 500) stock index was on track for its largest one-day percentage fall in four weeks.

In late afternoon trade, the Dow Jones industrial average was down 0.41 percent to 20 856.95 and the S&P 500 lost 0.49 percent to 2 387.81 points.