South African stocks shed more than one percent early on Monday, overcast by weak offshore markets and as investors continued to fret about the authorities’ plans to give blacks a bigger role in white-dominated mining.
Global mining giant Anglo American as well as heavyweight platinum miners sagged, also reflecting investor concern over the health of the world’s biggest economy, the United States, where stocks sank on Friday.
The broad all-share index gave up 1,4% or almost 123 points to 8,896.82 points by 0842 GMT, led by the market’s biggest counter Anglo, which slid 6,2% to R117,30.
”The market’s not looking too healthy at the moment. We’re weak obviously on the back of weaker global overseas markets. We’re just waiting for light at the end of the tunnel,” said Paul Patterson of PSG Online Securities.
World number one platinum producer Anglo American Platinum lost 1,6% to R315. Other losers included pulp and paper producer Sappi which gave up 1,3% at R119,39.
Traders said a draft new mining charter that seeks to increase the participation of the black majority in the key mining sector was still undermining the resource-heavy bourse.
The draft, released late in July, says control of all new projects must rest with new black business within 10 years.
BHP Billiton, the world’s biggest diversified miner skidded four percent before paring losses to 1,9% at R42,90.
Despite the losses among big diversified miners, gold stocks racked up gains on a higher metal price.
The gold index jumped 5,1%, with the country’s biggest miner AngloGold clocking up 5,4% to R470.
Peer Gold Fields bagged 4,5% to 111 as bullion was seen consolidating at higher levels on Monday, buoyed by weak US equity markets.
The metal was trading at $307,40 an ounce by 0846 GMT from $305,35 when Johannesburg traders headed home on Friday.
Smaller rival Harmony Gold rose 6,7% to R127. Harmony releases its June quarter and final results at noon (1000 GMT). – Reuters