South Africa Stock Fell, Commodity Prices To Extend Declines
October 2nd, 2009 | File Under : Mining Stock - Trade & Market
South Africa’s FTSE/JSE Africa All Share Index fell for the first time in three days, losing 447.11, or 1.8 percent, to 24,519.76, as unemployment in the U.S. at a 26-year high stoked concern the global economic recovery won’t last, prompting commodity prices to extend declines. The measure dropped 1.7 percent this week, a second week of declines.
The following are among the most active stocks in the South African equity market today.
Anglo American Plc (AGL SJ), the diversified mining company that makes up almost 10 percent of the country’s benchmark stock index, fell 4.44 rand, or 1.9 percent, to 229.56 rand. The stock slumped 5.7 percent this week. Copper for delivery in three months slid as much as 2.9 percent to $5,810 a metric ton in London, extending yesterday’s 2.8 percent drop. Lead, zinc and aluminum prices also fell.
Impala Platinum Holdings Ltd. (IMP SJ), the world’s second- biggest platinum producer, declined 7.50 rand, or 4.4 percent, to 162.50 rand. AngloGold Ashanti Ltd. (ANG SJ), Africa’s largest gold producer, retreated 7.88 rand, or 2.6 percent, to 300 rand. Platinum, used mostly in automotive emissions-control parts, fell as much as 2.1 percent to $1,277.25 an ounce in London, while gold lost as much as 1.6 percent, to $986.90 an ounce.
MTN Group Ltd. (MTN SJ), Africa’s biggest wireless operator, rallied for a second day, adding 2.61 rand, or 2 percent, to 131.61 rand. Bank of America Corp. yesterday raised its recommendation on MTN to “buy” from “neutral,” the day after MTN and India’s Bharti Airtel Ltd. ended talks for a proposed $23 billion merger. JPMorgan Chase & Co. yesterday also raised its recommendation on MTN to “overweight” from “neutral.”
SABMiller Plc (SAB SJ) advanced 2.96 rand, or 1.6 percent, to 184.64 rand, the biggest gain in two weeks. The world’s second-largest brewer should be the “front-runner” among potential buyers of Fomento Economico Mexicano SAB’s beer division, analysts at UBS AG said.
SABMiller could fund a $9 billion bid entirely through debt, while Heineken NV and Anheuser-Busch InBev NV have “balance sheet constraints” restricting their ability to pay, UBS analysts including Jason DeRise said in an e-mailed note.
Sasol Ltd. (SOL SJ) fell 9.49 rand, or 3.3 percent, to 275.01 rand, its biggest decline in a month. Oil fell as much as 3.5 percent to $68.32 a barrel in electronic trading in New York.
Sun International Ltd. (SUI SJ) retreated for the first time in five days, slumping 190 rand, or 2.1 percent, to 89 rand. The hotel operator said workers belonging to the South African Catering and Allied Workers Unions plan a one-day strike after rejecting an 8 percent wage increase offer, according to an e-mailed statement.
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