Resources stocks came off the boil on the JSE on Friday, setting the All Share index on course for its first monthly decline of the year, amid low commodity prices.
The Resources 10 index, made up of big mining companies, including Anglo American and BHP Billiton, dropped 4.65% in its biggest weekly fall in almost a year as the prices of industrial commodities such as copper and iron ore declined.
The weakness in the commodity market came as the Trump administration suggested that the timeline of expected US fiscal stimulus could be far off. "Commodities have had a good run of late so I would not be surprised to see a pullback," said BP Bernstein Stockbrokers trader Vasilis Girasis.
Commodities and broader stock markets have rallied in recent months in anticipation of the US fiscal stimulus, which entails increased spending on infrastructure and tax reform as well as easing regulatory red tape.
The All Share ended 1.10% weaker at 52609.90 points on Friday, bringing its losses to 2.2% this month. Bid Corporation had a particularly good week (up 16%), as did Massmart (up 11%) and Shoprite (up 12%), after the release of their financial results.
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