Fin24

Resources and gold weigh on JSE

2012-11-13 18:57

Johannesburg - Gold and resource shares led the JSE lower on Tuesday‚ slipping on bearish global markets due to the US fiscal cliff — tax increases and spending cuts that go into effect in 2013 — and concerns about Greece’s financial problems.

At 17:00‚ the JSE All Share [JSE:J203] index was 0.30% lower at 37 352.25 points‚ with the Top 40 - (Tradeable) [JSE:J200] index dipping similarly by 0.32% to 33 137.26 points. Gold and resource counters gave back 1.52% and 1.19% respectively.

Leading European markets were little moved‚ with London’s FTSE 100 up 0.07% at 17:59 local time‚ after reports that Germany wants to bundle three tranches of financial aid to Greece into one.

The Dow Jones Industrial index was 0.53% firmer at 18:00 local time.

“The platinum price was up strongly today due to lower supply numbers from Johnson Matthey. Both Impala Platinum and Lonmin reacted positively but Anglo American Platinum will likely lag due to the news surrounding their parent company‚" Kyle Dutton‚ stockbroker at Mercato Financial Services in Johannesburg said.

"Most mining stocks were lower today with Anglo American closing down 3.5% after the miner said it was carrying out a detailed cost review to assess the effect of the delay faced by the Minas-Rio ore project in Brazil‚ with expenditure unlikely to be less than US$8bn. Kumba closed down after saying in a trading update that headline earnings will be more than 20% down in the year ended December; this also had a negative effect on Exxaro‚” he said.

"Amongst the stocks in the green were the global diversifieds‚ such as SAB‚ and telecom counters showed upward direction with Vodacom adding 1.25% after releasing solid results on Monday. However Vodafone's results today missed market expectations‚ and this could have a lagging affect on Vodacom‚" Dutton said.

At 17:20 local time the platinum price was 1.77% higher at $1 585.50.