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Johannesburg - The JSE opened higher overall on Monday
morning‚ with platinum and gold miners leading the downside.
At 9.30am the JSE All Share [JSE:J203] 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. We are‚ however‚ not seeing this continuing this morning‚” said Reuben
Beelders‚ portfolio manager at Gryphon Asset Management in Cape Town.
“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. SA 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 SA was in the
world’s eye late 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 SA‚
it remains to be seen how much of the damage to SA’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 at tad softer‚ off 0.01%‚ while
the Nikkei in Japan closed 0.09% stronger.
Local big movers this morning were Lonmin [JSE:LON]‚
shedding a further R4.09‚ or 4.91%‚ to R79.21‚ and Harmony Mining Company [JSE:HAR]‚
which had lost R2.14‚ or 2.66%‚ to R78.22. Harmony last Thursday reported a
headline loss per share of 20 cents for the June quarter‚ after HEPS of 234
cents for the March quarter.
Among building stocks Basil Read Holdings [JSE:BSR] added 30 cents‚ or 2.52% to R12.20 and Aveng [JSE:AEG] was up 36 cents‚ or 1.08%‚ to R33.64.
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