JSE weaker as resources slide in wake of Chinese trade data

The JSE was lower at midday on Tuesday as investors sold off resources shares following the release of trade data from China.

Though Chinese imports of some key commodities including copper‚ iron-ore and coal rose in November‚ this failed to alleviate the negative sentiment surrounding commodities because of concerns about a broader slowdown in the world’s second-largest economy‚ Dow Jones Newswires reported.

China’s total November exports fell 6.8%‚ more than the expected consensus decline of 5%. In comparison‚ the contraction in imports narrowed to -8.7%‚ from -18.8% in October.

At 12pm‚ the all share was down 0.95% to 49‚387.10 points. The blue-chip top 40 index fell 1.04%.

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The resource index led declines and was down 4.5%. Gold and banks were up 1.62% and 0.33%‚ respectively. Platinums shed 3.15%.

In Europe‚ stock markets were in the red as investor confidence stumbled following Chinese trade data.

At noon (CAT)‚ the London FTSE 100 was 0.68% lower‚ the Paris CAC 40 had declined by 0.83% and the German DAX 30 gave back 0.87%.

Among individual shares on the JSE‚ Anglo American’s share price tumbled 6.01% to R76.60. The globally diversified miner said on Tuesday it would sell more mines‚ cut its dividend this year and next and make deep cost cuts across the business in what CEO Mark Cutifani called an "aggressive restructuring" to cope with the global downturn in commodity prices and demand.

Kumba Iron Ore‚ a subsidiary of Anglo‚ plunged 10.79% to R35.15.

Harmony Gold climbed 8.16% to R11.14. Gold Fields rallied 3.74% to R38.28.

Anglo American Platinum slid 5.63% to R173.50. The group said it would impair assets by R14.2bn for the year ended December 2015.

Barclays Africa Group was up 2.12% to R154.26.

Sanlam was down 3.9% to R57.66.

TMG Digital/BDlive