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Johannesburg - SA stocks finished sharply lower on Monday propelled by a global sell-off as investors prepare for a world with limited monetary easing.
“We saw more of a negative reaction to peoples’ perceived outlook for stimulus with markets now pricing in for a new world where easing is going to be tapered off‚” said Ryan Wibberley‚ head of equity dealing for EM‚ Investec Asset Management.
At 17:00‚ the All Share [JSE:J203] index closed down 2.41% to 38 075.22 points weighed on heavily by the platinum index which slumped 4.07%. World markets were also broadly lower with London’s FTSE 100 down 1.20% at 16:55. At the same time the Dow was down 1.18%.
“In many ways it’s a perfect storm‚ with the timing of a more hawkish tone from the US Fed‚ the recent spike in bond yields coupled with some negative news out of China‚ the perceived engine for global growth‚” said Wibberley.
Global investment firm Goldman Sachs on Monday revised its 2013 growth outlook for China’s economy to 7.5% y/y from 7.8% y/y citing tighter fiscal conditions. Chinese interbank lending rates climbed to record highs last week heightening concerns of a possible liquidity crunch‚ which sent China’s Shanghai Composite tumbling 5.3% to close at four year lows.
On the JSE‚ construction companies were mostly higher on the conclusion of the Competition Commission’s multiyear investigation of collusive practices in the industry which saw 15 construction companies being fined a total of R1.46bn.
Among construction stocks‚ Aveng (AEG) climbed 5.17% to R29.29‚ Wilson Bayly Holmes-Ovcon (WBO) added 1.94% to R152.91‚ while Group 5 (GRF)‚ which has yet to settle with the Competition Commission‚ gave up 3.24% to R35.80.
Resource counter BHP Billiton (BIL) lost 2.31% to R261.89 and Anglo American (AGL) dropped 3.55% to R203.99
Among banking and financial counters‚ Standard Bank (SBK) lost 2.04% to R105.21‚ Santam (SNT) plummeted 5.15% to R184 and Discovery (DSY) tumbled 4.70% to 74.62.
Gold miner Harmony (HAR) plunged 8.31% to R34.20 and Gold Fields (GFI) dropped 3.02% to R51.72.
Among platinum miners‚ Impala (IMP) was down 5.15% to R89.81 and Lonmin (LON) relinquished 5.87% to 40.43.
“We saw more of a negative reaction to peoples’ perceived outlook for stimulus with markets now pricing in for a new world where easing is going to be tapered off‚” said Ryan Wibberley‚ head of equity dealing for EM‚ Investec Asset Management.
At 17:00‚ the All Share [JSE:J203] index closed down 2.41% to 38 075.22 points weighed on heavily by the platinum index which slumped 4.07%. World markets were also broadly lower with London’s FTSE 100 down 1.20% at 16:55. At the same time the Dow was down 1.18%.
“In many ways it’s a perfect storm‚ with the timing of a more hawkish tone from the US Fed‚ the recent spike in bond yields coupled with some negative news out of China‚ the perceived engine for global growth‚” said Wibberley.
Global investment firm Goldman Sachs on Monday revised its 2013 growth outlook for China’s economy to 7.5% y/y from 7.8% y/y citing tighter fiscal conditions. Chinese interbank lending rates climbed to record highs last week heightening concerns of a possible liquidity crunch‚ which sent China’s Shanghai Composite tumbling 5.3% to close at four year lows.
On the JSE‚ construction companies were mostly higher on the conclusion of the Competition Commission’s multiyear investigation of collusive practices in the industry which saw 15 construction companies being fined a total of R1.46bn.
Among construction stocks‚ Aveng (AEG) climbed 5.17% to R29.29‚ Wilson Bayly Holmes-Ovcon (WBO) added 1.94% to R152.91‚ while Group 5 (GRF)‚ which has yet to settle with the Competition Commission‚ gave up 3.24% to R35.80.
Resource counter BHP Billiton (BIL) lost 2.31% to R261.89 and Anglo American (AGL) dropped 3.55% to R203.99
Among banking and financial counters‚ Standard Bank (SBK) lost 2.04% to R105.21‚ Santam (SNT) plummeted 5.15% to R184 and Discovery (DSY) tumbled 4.70% to 74.62.
Gold miner Harmony (HAR) plunged 8.31% to R34.20 and Gold Fields (GFI) dropped 3.02% to R51.72.
Among platinum miners‚ Impala (IMP) was down 5.15% to R89.81 and Lonmin (LON) relinquished 5.87% to 40.43.
