JSE closes down‚ miners weigh
Johannesburg - The JSE share market closed lower on Thursday with platinum and resources leading the downside and industrials providing support‚ while the expected hold on interest rates had no material effect on the market.
The Reserve Bank’s monetary policy committee (MPC) left interest rates unchanged at 5% on Thursday following its three day meeting.
At 17.00 local time‚ the JSE all-share index was down 0.28% to 36 359.98 points‚ with platinum losing 2.22% and resources down 1.67%‚ while industrials added 0.52%.
European bourses traded lower with the FTSE last seen down 0.76%.
“Platinum counters were down on a lower platinum price with global supply concerns easing away‚ after unresolved mining issues earlier in the week now seen starting to be resolved‚” said Francois Venter‚ equity dealer at Investec Asset Management in Cape Town.
“The industrial index was led higher by continued demand seen from foreigners for retail stocks‚” he added.
“Reserve Bank Governor Gill Marcus made it clear that consumer spending was in good shape and she did not feel it necessary to cut rates‚” he said.
Big movers were Anglo American [JSE:AGL] down 3.32% at R262.99 and Sasol [JSE:SOL] off 1.74% to R375.00.
Anglo Platinum [JSE:AMS] gave up 1.32% to R449‚ Impala Platinum Holdings [JSE:IMP] dropped 2.14% to R142.41 and Lonmin [JSE:LON] shed 6.31% to R82.26.
Telkom [JSE:TKG] share price dropped 5.51% to R19.37 after the fixed-telecoms operator warned of a big drop in its half-year profit to the end of September.
Headline earnings per share from continuing operations are expected to be at least 65% lower‚ from the same period a year ago.
Global furniture retailer and manufacturer Steinhoff International Holdings [JSE:SHF] closed 3.24% lower at R26.25‚ after it announced on Thursday that it had launched a bond offering in excess of €400m.