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Johannesburg - South African stocks edged lower on Monday, snapping three straight days of gains as worries about softer demand in commodity-consuming giant China hit resource firms such as Kumba Iron Ore [JSE:KIO]
Chinese officials have suggested 2012 could be one of the worst years ever for the domestic steel sector, with overcapacity and slow demand continuing to erode margins, and some say iron ore import volumes could fall this year.
“Today’s move is mostly on the back of what we are seeing lately coming out of China and it is particularly affecting the resources shares,” said Ferdi Heyneke, a portfolio manager at Afrifocus Securities.
“In other parts away from the resources it’s not bad at all. I am not too concerned,” Heyneke said.
South Africa’s blue-chip Top 40 - (Tradeable) [JSE: J200] index drooped 0.11% to 30 067.80. The broader All Share [JSE:J203] index edged down 0.07% to 33 901.72.
Kumba, which also traded ex-dividend, or without the right to the latest dividend payout, fell 3.04% to R543.
Anglo American Platinum, the world’s top platinum producer, fell 2.85% to R548.90. The shares also traded ex-dividend. Petrochemicals group Sasol, which reported a surge in first-half earnings, fell 2.02% to R384.82.
Advancing shares outperformed decliners, 158 to 108, while 86 shares were unchanged.
Blue-chip gainers which countered the resource rout included Johannesburg-listed shares of Swiss firm Richemont, the maker of Cartier watches and Mont Blanc pens, which rose 2.6% to R47.44.
Furniture maker Steinhoff International rose 1.53% to R27.82.
Trade was relatively slow, with about 170 million shares changing hands, according to preliminary exchange data. That compares to last year’s daily average of 256 million shares.
Chinese officials have suggested 2012 could be one of the worst years ever for the domestic steel sector, with overcapacity and slow demand continuing to erode margins, and some say iron ore import volumes could fall this year.
“Today’s move is mostly on the back of what we are seeing lately coming out of China and it is particularly affecting the resources shares,” said Ferdi Heyneke, a portfolio manager at Afrifocus Securities.
“In other parts away from the resources it’s not bad at all. I am not too concerned,” Heyneke said.
South Africa’s blue-chip Top 40 - (Tradeable) [JSE: J200] index drooped 0.11% to 30 067.80. The broader All Share [JSE:J203] index edged down 0.07% to 33 901.72.
Kumba, which also traded ex-dividend, or without the right to the latest dividend payout, fell 3.04% to R543.
Anglo American Platinum, the world’s top platinum producer, fell 2.85% to R548.90. The shares also traded ex-dividend. Petrochemicals group Sasol, which reported a surge in first-half earnings, fell 2.02% to R384.82.
Advancing shares outperformed decliners, 158 to 108, while 86 shares were unchanged.
Blue-chip gainers which countered the resource rout included Johannesburg-listed shares of Swiss firm Richemont, the maker of Cartier watches and Mont Blanc pens, which rose 2.6% to R47.44.
Furniture maker Steinhoff International rose 1.53% to R27.82.
Trade was relatively slow, with about 170 million shares changing hands, according to preliminary exchange data. That compares to last year’s daily average of 256 million shares.
