South African stocks dipped into the red by midsession on Monday, led by losses in market bellwether Anglo American Plc but sparkling platinum and gold capped further losses.
At 1040 GMT, the broad all-share index was down 0.11 percent or 10,38% at 9,536.14 with about R298-million worth of shares traded.
Traders said that was well below average.
”It’s a dismal day in terms of turnover. We have a very tentative market because of the holiday tomorrow,” said Julian Henry of Barnard Jacobs Mellet.
Local financial markets will be closed on Tuesday for the Heritage Day holiday.
Anglo remained in focus ahead of a new draft mining charter due to be released by Friday. The government is expected to give details for increased black participation in the white-dominated mining sector — the economic mainstay.
Anglo dipped 0,3% to R129,50 as investors adopted a wait-and-see attitude. Greg Potter of BOE Securities said weaker eurostocks added to Anglo’s gloom.
Leading the gainers was Impala Platinum which shot 3,2% higher as investors piled up the stock ahead of the unbundling of a 46% stake by big shareholder Gencor on November 4.
The unbundling is seen giving Implats a bigger freefloat.
”We feel with the unbundling comes the possibility of further corporate activity. Maybe we’ll see some foreign player coming for a stake in Implats,” Henry said. Implats was the top traded stock by deals at R619, up R19.
Bigger rival Anglo American Platinum, the world’s largest platinum producer inched 0,1% higher to 345.20.
Elsewhere fears of war in Iraq fired bullion to nine-week highs in London, helping erase early morning losses in gold shares in Johannesburg.
The key gold index climbed 1,7% higher boosted by the yellow metal’s safe haven status in times of war.
AngloGold, the country’s leading producer, added 1,3% to R596. Rival Gold Fields notched 1,9% higher to R151.
Synthetic fuel producer Sasol added to the glow. Sasol, which supplies 40% of the country’s liquid fuels, bagged in 1,1% to R118,10 as crude oil prices blazed to fresh 19-month highs on Monday on Iraq-US war fears.
”Oil stocks are in focus today,” said Eddie Monale of Legae Securities. – Reuters