Johannesburg | Thursday
SOUTH African shares opened lower on Thursday as a nationwide strike by labour dampened market sentiment and was seen weighing heavily on industrial shares, dealers said on Thursday.
A weaker close in US stock markets, where key equity gauges sank to their lowest levels since April with investors nervous about poor corporate profits, also added to the gloom.
”We’re going to take our cue from the US. Half the nation is on strike and that doesn’t bode well for sentiment,” said an equities dealer.
South Africa’s largest labour federation, the Congress of South African Trade Unions (Cosatu) called a two-day national strike, from Wednesday, to protest against privatisation.
On Wednesday, schools, postal and transport services were disrupted and the strike was seen picking up on Thursday after the 1,8-million Cosatu urged more workers to join in.
Industrial shares were seen bearing the brunt of the strike and were down 0,61%. At 0719 GMT, the benchmark all-share index was down 40,6 points or 0,45% at 8,993.5.
The blue chip share index gauging top 40 firms dipped 0,5%.
Platinum shares fell 1,37% on the back of lower platinum prices. Spot platinum was quoted at $445.00/450.00 from New York’s close of $460.00/467.00.
The world’s second largest platinum producer Impala Platinum sunk 2,12% to an early morning low of R370. Rival Anglo American Platinum (AMSJJ) shed 1,83% at R321.
South Africa’s IT group Dimension Data sank 1,41% to an early low of R14 rand, tracking weaker tech shares overseas and in a soft tech sector down nearly one percent.
Banking shares seen overvalued by investors, also dipped 0,22% as investors sold shares in what traders described as a wave of profit taking. – Reuters