Miners Pulled Down the JSE yesterday, Extending Negative Trade for Four Consecutive Days
The JSE continues on the downward trajectory for a fourth continuous day this week as it closed 1.8 percent down yesterday. This has been the longest losing stretch since October 2nd as weaker oil and metal prices weigh on resources and manufacturing slowdown in China. All economic data published during the week has not been able to lift the market. The reserve bank decision to keep repo rates unchanged was in line with market expectations and thus had no significant impact on the market.
The benchmark FTSE/JSE Africa All Share Index fell 1.78% to 49,272.05 by the close in Johannesburg, the biggest decline since October 15 to the lowest level since October 30. The measure is headed for its first weekly drop in six weeks. The metals and minerals index dropped 3.8%. Brent crude headed for its ninth straight weekly decline.
Stocks slid in the world’s biggest platinum producer, as the preliminary Purchasing Managers’ Index in its biggest trading partner, China, retreated to a six-month low in November. Kumba Iron Ore fell 1.5% to R247.21, while parent Anglo American dropped 3.9% to R221.25.
The top losers of the day included Amplats which was down 5.5 percent, Anglo gold down 4.9 percent, Shoprit down 4.8 percent, Exxaro down 4.4 percent and Implats down 4.2 percent. Investors will be desperate for good news on the markets today and to see the trend reversed. However, potential investors need to scan the market to identify great stocks to own at such temporary low prices.