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The JSE heads south for the third day on the trot

by , 26 July 2013

Today, the market finished in negative territory as a result of large losses by the gold miners. Retailers didn't help out, posting losses. Let's have a closer look at what happened…

To finish the week, the JSE closed down for the third day in a row today.

The JSE All Share closed 0.59%, with the Top 40 dropping 0.60%.

Gold shares were mostly to blame, notes IOL.

The “gold sector dropped 3.73%,” notes BDLive. This is down to a “weaker gold price and some profit taking”.

There are worries about strike action due to a wage talk dispute.

A trader at Nedbank Private Wealth, Andrew Bryson agrees, notes MoneyWeb. He believes that “until there is clarity” on strike action, “the sector is going to remain under pressure”.

But gold miners weren’t the only poor performers on the JSE.

“Retailers also took a hit,” adds MoneyWeb. Massmart closed at its lowest level for nine months.

The retailers are struggling since Truworths poor results earlier this week, says IOL. This has sparked worries “about weakening consumer demand”.

Over the course of the week, mining shares did well

The week as a whole saw the All Share “flat,” notes BDLive. But the miners did well.

Platinum counters added 7%, whilst gold shares gained 4.22%, adds BDLive. The resource index rose “just over 2%”.

Head of dealing for Investec Asset Management, Ryan Wibberley said “mining stocks have dictated market direction” upwards for most of the week, reports I-Net Bridge.

Wibberley adds that results from the troubled mining sector “were largely positive”.

And it looks like the northern hemisphere’s summer holidays are in full swing. The market was particularly quiet.

Low volumes traded, “with just 152 million shares traded,” says IOL.

With a host of consumer data out next week, market trade might be on the quieter side until the figures are out.

The JSE heads south for the third day on the trot
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