Picture: JSE
Picture: JSE

The JSE was lower at lunchtime on Tuesday, with mining stocks dragging the market lower.

The all share was off 0.33% at 59,623.40 points, as the resources index shed 1.83% amid lower commodity prices and a slightly stronger rand.

The retreat in mining stocks coincided with weaker than expected data from China, which is the world’s top consumer of resources. Still, resource stocks have had a tremendous run on the JSE since June, leaving them vulnerable to profit-taking on a short-term basis.

Herenya Capital Advisors trader Petri Redelinghuys said he would continue to maintain exposure to the resource sectors because of global growth, which he said was in good shape.

Big industrial stocks were mostly lower, partly hurt by the recovery in the rand. Financial stocks held up for the second day in a row despite local politics playing out negatively for the rand and local bonds over the past few weeks.

Among the companies in focus, Consolidated Infrastructure lost a whopping 64% of its value, after the small-cap company said earlier in the day that full-year headline earnings per share (HEPS) would drop by 55%, worse than its earlier forecast.

Telkom shares have been under pressure since it released its first-half results last Friday. The share price has dropped about 16% since then, after it reported a 7.4% drop in HEPS.

Europe’s leading markets were modestly higher at midday, despite a weaker session in Asia, where Japan’s Nikkei 225 lost 0.80%.

BHP lost 2.06% to R265.43, Anglo American 1.35% to R279.66, and African Rainbow Minerals 2.06% to R123.50.

AngloGold Ashanti slumped 3.41% to R138.60, Gold Fields 3.3% to R55.16, and Harmony Gold 5.31% to R24.95.

Anglo American Platinum was down 3.01% to R395.01 and Impala Platinum 6.91% to R37.31.

Barclays Africa gained 1.43% to R143.91 and Sanlam 1.08% to R72.24.

Intu Properties relinquished 2.61% to R37.69 and Capital & Counties 1.46% to R48.05.

Life Healthcare added 1.92% to R25.43, despite a trading update late on Monday in which it said it expected a drop of up to 60% in HEPS for the year to end-September.

Steinhoff was off 1.44% to R54.70 and Massmart 3.27% to R106.86.

Murray & Roberts gave up 1.69% to R14.78, while PPC gained 1.73% to R6.48.

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