Publications
Partners
Johannesburg - South African stocks edged down
half a percent on Wednesday, as shares of Impala Platinum fell after the miner
said its April deliveries would be cut in half by a strike at its main mine.
South Africa’s announcement of a lower-than-expected 2012/13 budget
deficit had little direct impact on the stock market, traders said, adding that
many investors were taking a conservative tack after the market’s recent run.
South Africa stocks, which hit record highs earlier this month,
will need a further catalyst to move higher, market players have said.
“I think the market is going to latch on to whatever negative news
comes out now and take a bit of profits,” said Mitchell Gannaway of Thebe
Stockbroking.
“It doesn’t matter what it is.”
The benchmark Top 40 - (Tradeable) [JSE:J200] index fell 0.49% to 30 288.89. Earlier
this month it hit its highest since mid 2008.
The broader All Share [JSE:J203] index fell 0.4% to 34 006.52. The
index hit a lifetime high of 34 460.57 on Feb 2.
Impala Platinum, the world’s second-largest platinum producer, said
its April deliveries would be halved by a strike at its main Rustenburg mine.
Implats has lost at least 1.2 billion rand ($156 million) in
revenue from the strike so far and production has yet to resume. It fell 1.25
percent on the day.
Some recent gainers, such as drug company Aspen Pharmacare , fell
on concerns that gains may be overdone. Shares of Aspen dropped 0.9 percent to
104.27 rand. The company has gained nearly 3 percent over the previous 5
sessions and 17 percent over the last 3 months.
South Africa projected a slightly-than-expected budget deficit on
Wednesday, reassuring bond investors and ratings agencies that the continent’s
biggest economy is keeping a lid on spending despite huge social pressures and
sluggish growth.
Presenting the third budget of President Jacob Zuma’s
administration, finance minister Pravin Gordhan said spending would exceed
revenues by 153 billion rand ($19.9 billion), or 4.6 percent of gross domestic
product (GDP).
Shares of Massmart fell 0.6% to R181.51.
The discount retailer, which is majority owned by U.S. retail giant
Wal-Mart Stores Inc, reported a 19 percent rise in first-half earnings on
Wednesday, helped almost entirely by favourable currency swings as higher costs
and discounts weighed.
Trade was relatively active, with 195 million shares changing hands
on the exchange, compared with last year’s daily average of 256 million shares.
