JSE stronger but gold, platinum miners down
THE JSE opened higher overall on Monday morning, with platinum and gold miners leading the downside.
At 9.30am the JSE all share index was 0.27% higher at 35,643.85 points, with gold miners down 0.54% and platinum counters off 0.17%.
"We had a negative day on Friday, with retailers declining towards the end of the week, and money being taken off the table going into the weekend," said Reuben Beelders, portfolio manager at Gryphon Asset Management in Cape Town.
"We are, however, not seeing this continuing this morning," Mr Beelders said.
"Markets have run quite hard recently and the market is due for a breather."
The platinum price was stronger on Monday morning after gains on Friday on the back of the violent clashes and deaths at Lonmin’s Marikana platinum mine on Thursday.
South Africa supplies 80% of global platinum demand.
At 9.29am the platinum price had gained 0.58% to trade at $1,477.50 after Friday’s gains.
Absa Capital said in its morning note that South Africa was in the focus globally last week and at the weekend, following last Thursday’s awful scenes at the Marikana platinum mine.
"Highlighting the layered challenges faced by parts of South Africa, it remains to be seen how much of the damage to South Africa’s reputation as an investment destination will be lasting or temporary, while the immediate economic impact will obviously be further losses of output to the mining sector," the bank said.
"The weekend was largely quiet, with President Jacob Zuma and senior ministers in the region to calm tension, while the controversial Julius Malema appeared to stir tension further.
"Workers have been given until the end of today to end the illegal strike, which potentially poses the next flashpoint, while a memorial service this coming Thursday to honour the 44 who died in clashes last week will also be watched closely."
The release of July’s consumer price index (CPI) figures on Wednesday is the main feature on the local data front this week.
"We expect the downward trend in inflation to continue on lower fuel and electricity prices and see the headline inflation figure at 5.1% year on year from 5.5% previously. Consensus is looking for 5.2% year on year," Absa Capital said.
Elsewhere, the FTSE 100 was a tad softer, off 0.01%, while the Nikkei in Japan closed 0.09% stronger.
Lonmin was among the big movers locally on Monday morning, shedding a further R4.09, or 4.91%, to R79.21.
Harmony lost R2.14, or 2.66%, to R78.22. The gold producer last Thursday reported a headline loss per share of 20c for the June quarter, after headline earnings per share of 234c for the March quarter.
Among building stocks, Basil Read Holdings added 30c, or 2.52%, to R12.20 and Aveng was up 36c, or 1.08%, to R33.64.
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