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Johannesburg - The possibility of renewed wage talks in the platinum sector was as expected the focus on the JSE on Monday, although there was still no indications of what the unions’ response would be to the new wage offer that the mining groups put on the table on Friday.
Platinum shares rose further and are trading not far below their highs, which is amazing after the three companies involved in the strike have lost more than R13bn in income according to the Chamber of Mines.
Nothing much happened on the rest of the market and by midday the major indices were only marginally higher than on Thursday.
The new offer, which would see entry level underground employees' minimum cash remuneration - comprising basic wages and holiday, living out and other allowances - rise to R12 500 per month by July 2017, is still a long way off on the unions' demand of a minimum basic wage of R12 500.
It was however constructed in such a way that the union Amcu might accept it without losing too much face. Reports over the weekend suggest that the strikers and the communities around them are suffering severe economic hardship and that more and more workers are desperate to return to work. Workers have lost more than R6bn in earnings.
Amplats [JSE:AMS] traded 0.82% higher at R509.35 and Impala Platinum [JSE:IMP] improved 0.99% to R123.00. The mood was somewhat tempered by the lower platinum price, which fell in anticipation of an end to the strike. Platinum for July delivery fell $28, or 2%, to close at $1 400.70 an ounce.
An end to the platinum strike will also improve the general business climate, and the news from Wall Street is also positive, but the All-share index lost ground again after rising sharply initially.
By midday the All-share index was only 0.08% higher on 48 400 points, while the Top 40 index was 0.1% lower on 43 491 points.
US stocks finished higher on Monday as solid earnings reports help to ease fears about the valuations of shares.
Peter Cardillo, chief market economist at Rockwell Global Capital, said earnings have so far been solid enough to steady the market. "So far the disappointments have been quite limited."
This week will be however crucial as 159 companies report earnings, making it the busiest week of the quarter.
Of the major indices on the JSE the resources stocks was initially lower, but recovered somewhat to be only 0.05% lower by midday. The market is waiting this week for management reports of Anglo American [JSE:AGL] and some of its subsidiaries for the first quarter that will give an indication of what can be expected for the first half year.
Anglo American lost 0.96% to R270.97 while Kumba Iron Ore [JSE:KIO] traded 1.33% lower on R374.95.
The gold index lost 1.2% despite a higher gold price. Gold Fields [JSE:GFI] lost 2.2% of its value to R41.80, but Harmony [JSE:HAR] traded 0.15% higher on R32.80.
The Industrial index was 0.24% higher. Its biggest component, Naspers [JSE:NPN], was 0.48% lower on R1 084.75.
Platinum shares rose further and are trading not far below their highs, which is amazing after the three companies involved in the strike have lost more than R13bn in income according to the Chamber of Mines.
Nothing much happened on the rest of the market and by midday the major indices were only marginally higher than on Thursday.
The new offer, which would see entry level underground employees' minimum cash remuneration - comprising basic wages and holiday, living out and other allowances - rise to R12 500 per month by July 2017, is still a long way off on the unions' demand of a minimum basic wage of R12 500.
It was however constructed in such a way that the union Amcu might accept it without losing too much face. Reports over the weekend suggest that the strikers and the communities around them are suffering severe economic hardship and that more and more workers are desperate to return to work. Workers have lost more than R6bn in earnings.
Amplats [JSE:AMS] traded 0.82% higher at R509.35 and Impala Platinum [JSE:IMP] improved 0.99% to R123.00. The mood was somewhat tempered by the lower platinum price, which fell in anticipation of an end to the strike. Platinum for July delivery fell $28, or 2%, to close at $1 400.70 an ounce.
An end to the platinum strike will also improve the general business climate, and the news from Wall Street is also positive, but the All-share index lost ground again after rising sharply initially.
By midday the All-share index was only 0.08% higher on 48 400 points, while the Top 40 index was 0.1% lower on 43 491 points.
US stocks finished higher on Monday as solid earnings reports help to ease fears about the valuations of shares.
Peter Cardillo, chief market economist at Rockwell Global Capital, said earnings have so far been solid enough to steady the market. "So far the disappointments have been quite limited."
This week will be however crucial as 159 companies report earnings, making it the busiest week of the quarter.
Of the major indices on the JSE the resources stocks was initially lower, but recovered somewhat to be only 0.05% lower by midday. The market is waiting this week for management reports of Anglo American [JSE:AGL] and some of its subsidiaries for the first quarter that will give an indication of what can be expected for the first half year.
Anglo American lost 0.96% to R270.97 while Kumba Iron Ore [JSE:KIO] traded 1.33% lower on R374.95.
The gold index lost 1.2% despite a higher gold price. Gold Fields [JSE:GFI] lost 2.2% of its value to R41.80, but Harmony [JSE:HAR] traded 0.15% higher on R32.80.
The Industrial index was 0.24% higher. Its biggest component, Naspers [JSE:NPN], was 0.48% lower on R1 084.75.
