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Johannesburg - South African stocks ended flat
on Monday, as banking stocks like Absa followed European peers down on renewed
Greek jitters, while Anglo American Platinum (Amplats) jumped after Deutsche
Bank said it stood to “unlock significant value.”
The blue-chip Top 40 - (Tradeable) [JSE:J200] index was barely changed, edging down 0.01% to 30 395.53. The broader All Share [JSE:J203] index ended down 0.02% at
34 214.07.
“As we approach the 30 000 level for the Top-40, some tough support
begins to be found but if we start breaking through 30 000 we can start talking
levels close to 29 600 in the short term,” said George Glynos, managing director
at financial consultancy ETM.
He said this was because 30 000 was an area where the index had
brushed previous lows and found support in January and February.
Amplats, the world’s No. 1 platinum producer and a unit of Anglo
American, led the blue-chip pack on Monday, gaining 3.20% to R566.72.
Deutsche Bank said on Monday in a research note that Anglo
American’s recent announcement that it planned an “operational review” of
Amplats “affords the group an opportunity to restructure and unlock significant
value.”
“We think Amplats can achieve the key goal of mining companies -
earning more off a lower-cost asset base,” it said, noting that its options
included selling four deep-level mines in the Rustenburg area.
Deutsche Bank retained its “Hold” on Amplats because it said any
process along these lines would likely take 24 months.
Banks fared badly as Absa, majority owned by British lender
Barclays, lost 1.87% while rival Standard Bank, Africa’s top lender by
assets, shed 0.92%.
They were dragged down by European banking stocks, which fell after
an auction to determine insurance payouts on Greek sovereign bonds showed
investors fear for the country’s financial future even after a debt
restructuring and aid packages.
Decliners outnumbered advancers 164 to 121 with 59 unchanged.
