Diversified miners lose out as investors move to financials and retailers
The JSE showed a divergent trading pattern on Tuesday, with money moving from diversified miners to financial stocks and retailers. The resource 10 index, which had a strong run since last week with Donald Trump’s election victory, gave up 3% at lunchtime. In turn, the pullback in this heavyweight sector helped drag the all-share index off 0.24% to 49,612.10 points. The prospect of higher infrastructure spending by a Trump administration contributed to a surge in prices of industrial metals such as copper. But analysts say the upside potential in these commodities has been overdone in the short term. The price of iron ore was off 6% to $72 a ton, after surging 22% last week. "Broadly speaking, I think the market is still grappling to get to grips with the Trump presidency from the policy perspective," said Nerina Visser, a market analyst at etfSA. Financial stocks, particularly banks, rebounded as did retailers, thanks to an improving rand. The local currency has recovered about 30c...
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