JSE extends losses, led by miners

The JSE extended losses at noon, with general mining counters leading the downside.

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The JSE extended losses at noon on Tuesday, with general mining counters leading the downside on renewed concerns after a BHP Billiton (BIL) report saying that demand from China for iron ore was flattening out.

“The market is sensitive to any news coming out China since the realignment of its economic growth forecast several weeks ago,” said Ian Cruickshanks, market watcher at Nedbank Capital.

By 12:01 local time, the JSE all-share index had lost 0.81% to 33,935.96 points, with resources sliding 1.87%, gold miners shed 1.31% and platinum miners lost 0.36%.

Industrials shed 0.36%, banks gave up 0.29%, and financials edged down 0.12%.

The rand was trading at 7.60 to the US dollar, from 7.54 at the JSE's close on Monday. Gold was quoted at US$1,649.27 a troy ounce from $1,665.06 at the JSE's previous close, while platinum was at US$1,665/oz from US$1,679/oz.

“The JSE is now below 34,000 level on the all-share after BHP Billiton said the demand for iron ore is going to be flat in the short to medium term. Remember most of our resources go to China,” said Hennie Fourie, stockbroker at PSG Konsult.

European stock markets fell on Tuesday, pressured by losses in Asian markets with investors' showing reluctance to build exposure to equities following recent gains, and instead looking to economic data for fresh direction, Dow Jones Newswires reports.

There seems to be an underlying feeling of caution at the moment as investors struggle to find reasons to increase this current rally further, said Simon Furlong, a trader at Spreadex. “The 'risk on' trading the markets have experienced recently, fuelled by liquidity and a more positive outlook for the U.S. economy seems to be losing some steam,” Furlong added.

London's FTSE 100 index was down 0.97% to 5,903 points at about noon local time.

Asian stock markets ended lower, with resource stocks hit by a decline in commodity prices and comments from an executive at mining giant BHP Billiton that Chinese demand growth was slowing.

China's Shanghai Composite fell 1.4%, Hong Kong's Hang Seng Index shed 1.1%. Japanese markets were closed for a holiday.

On the JSE, Anglo American (AGL) lost R8.51 or 2.70% to R306.79, BHP Billiton (BIL) dropped R6.25 or 2.54% to R239.95 and Sasol (SOL) dipped R2.34 to R376.09.

Among gold stocks, Anglo Gold Ashanti (ANG) shed R3.80 or 1.31% to R286.45, Gold Fields (GFI) eased off R1.02 to R105.21 and Harmony (HAR) was down R1.75 or 2.10% to R81.75. Gold One (GDO) was however up 53 cents or 15.10% to R4.04. Gold One said earlier that conditions relating to the acquisition of megamine assets by Goliath Gold Mining have been fulfilled.

In platinums, Anglo American Platinum (AMS) slipped R2.07 to R565.51 and Lonmin (LON) lost R1.42 or 1.05% to R134.03.

Among other miners, Exxaro Resouces (EXX) was down R2.70 or 1.30% to R205.42, Kumba Iron Ore (KIO) slid R8.98 or 1.65% to R535.61.

CashBuild (CSB) rallied R5 or 4.17% to R125. Earlier the building materials retailer reported a 134% rise in diluted headline earnings per share to 652.1 cents for the six months ended December 2011 from 278.8 cents a year ago, and declared an interim dividend of 296 cents per share, up 89% on the previous year. - I-Net Bridge

Source: http://www.iol.co.za/jse-extends-losses-led-by-miners-1.1260585

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