23 November 2015 1 Min Read

JSE opens weaker on softer Asian markets

in Business Times by Maarten Mittner

The JSE opened weaker on Monday on softer Asian markets and a stronger dollar‚ sending mining stocks into the red.

A stronger dollar is usually bad news for commodities‚ and the gold price was down 0.64% at $1.070.75 per ounce at the JSE’s opening. The platinum price lost 0.38% to $850.42.

At 9.28am‚ the Shanghai composite index was 0.63% weaker and the Hang Seng had lost 0.38%. The Dow Jones industrial average closed 0.51% higher on Friday and the Dax was up 0.31% on Monday morning.

The dollar extended its rally during Asian trading on Monday after European Central Bank (ECB) president Mario Draghi emphasised on Friday the bank’s commitment to do "what it must do" to raise inflation‚ Barclays Research said in an early morning note.

Expectation of easier monetary conditions helped to push European and US equities higher‚ while weakening the euro.

"Near-term stability in emerging-market assets may not last‚ with the (US) Fed tightening cycle likely a major deterrent for capital flows into emerging markets‚" Barclays said.

At 9.28am‚ the all share was 0.85% lower at 51‚796.60 and the blue-chip top 40 lost 0.92%. The gold index dropped 4%. Resources were down 3.73%. Banks dropped 1.04% and platinum stocks shed 1.03%.

Among the big mining stocks Glencore fell below R20 again‚ trading 4.23% lower at R19.46. Anglo American was 3.86% weaker at R93.37.

Kumba Iron Ore was 4.68% off at R43.37.

Gold miner Harmony shed 6.29% to R8.19.

Among platinum stocks‚ Lonmin was 10.32% firmer at its new lower trading level of 32c. Anglo Platinum shed 4.56% to R199.81.

Standard Bank led the losses among banks‚ trading 1.7% weaker at R137.44.

Food conglomerate Tiger Brands was 1.51% lower at R351.61.

Rhodes Food was unchanged at R22 after reporting on Monday that turnover for the year ended September 27 rose 23.7% from a year earlier to R3bn.

Hospital group Netcare was 1.23% lower at R38.62. The group reported on Monday that headline earnings per share for the year ended September 2015 came in at 189c‚ up 12.6% from a year ago.

- TMG Digital/BDlive