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Resource firms drive JSE lower

Feb 16 2012 18:26 Reuters

Company Data

Top 40 [JSE : J200]

Last traded R29,189.72
Change R115.53
% Change 0.40%
Cumulative volume 0
Market cap R0.00

Last Updated: 28/05/2012 at 17:43. Prices are delayed by 15 minutes. Source: McGregor BFA

 

All Share [JSE : J203]

Last traded R33,104.06
Change R111.81
% Change 0.34%
Cumulative volume 0
Market cap R0.00

Last Updated: 28/05/2012 at 17:43. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Johannesburg - South African stocks retreated nearly 1 percent on Thursday as falling commodity prices and nagging concerns over euro zone debt dragged on resources firms such as AngloGold Ashanti.

Impala Platinum slid 4 percent as workers wreaked havoc at its Rustenburg plant, raising concern that an on-going strike will continue to halt production at the world’s single biggest platinum mine.

“Resource companies are driving the way down unfortunately, that’s on the back of weaker commodity prices and obviously more concerns over Europe,” said Desmond Reilly, a trader at PSG Securities.

The Top 40 - (Tradeable) [JSE:J200] index declined 0.97% to 30 099.5, while the broader All Share [JSE:J203] lost 0.85% to 33 801.64.

Bullion prices dropped more than 1% as pressure exerted by the euro’s drop to three-week lows versus the dollar pushed the metal through key support levels.

Johannesburg’s gold producers shed 2.3%. AngloGold Ashanti fell the most, shedding 4% to R326.14. Brokerage Macquarie cut the company’s target price to 464 rand from 488 rand and gave it an “outperform” rating.

Johannesburg’s index of platinum miners retreated 3% as the precious metal’s spot price weakened. Lonmin, the world’s third-largest miner of the white metal, dropped 2.2% to R121.59.

Impala, the world’s second-largest platinum producer, lost 4% to R158.19.

The world’s second-largest platinum producer says it lost R1.2bn from the labour disruption that has dragged on for about a month.

South African riot police fired gas, rubber bullets and water canon on Thursday at hundreds of striking miners who went on a rampage at the Rustenburg plant.

Despite reporting a 35% rise in first-half profit, high-end retailer Woolworths Holdings fell 1.9% to R41.70 as the weak sentiment weighed.

City Lodge Hotels bucked the bearish trend to jump 5.5% to R76.02 after brokerage HSBC raised the chain hotel to neutral from underweight.

Market activity was relatively slow with 164.7 million shares traded, according to preliminary data from the bourse. This compares with an average 256 million shares that changed hands daily in 2011. A total 191 counters retreated, outpacing the 93 gainers.

 
 
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