BP: Platinum price fears, US retail data send stocks lower
STOCKS edged down yesterday, as platinum mining firms dropped on fears of a sharp price decline, while weak US retail sales numbers revived concerns about the global economy.
The Top40 index of blue chips slipped 0.28 percent to 24 424.08, while the broader all share index fell 0.19 percent to 27 443.67 points, after gaining 1.1 percent on Tuesday.
US retail sales fell for a second month in June, a reminder that the world's biggest economy continues to face strong headwinds.
"There's concerns about some of the economic data out of the US. The disappointing data there is offset by better corporate earnings. Retail sales are down because now we're getting the fears about the US economy slowing," said Sasfin Holdings trader David Shapiro.
Anglo Platinum, the largest producer of the precious metal, fell 2.9 percent to R715.25, its biggest slide in two weeks, while rival Impala Platinum dropped 1.1 percent to R188.90.
The precious metal may face months of decline, possibly falling lower than $200 an ounce with a "major reversal" under way, according to a technical analysis from Commerzbank.
AngloGold Ashanti slid 0.8 percent to R313.51 while Anglo American dropped 0.7 percent to R277. DRDGold slipped 0.6 percent to R3.26.
Bucking the trend, Naspers gained 1.41 percent to R287. The company plans to buy a 28.7 percent stake in Russia's Digital Sky Technologies to bolster its internet business.
Richemont lost 1.3 percent to R28.40, paring Tuesday's 2.5 percent gain. The world's biggest jewellery maker said its first-quarter sales had continued the trend seen in the period before Christmas, without elaborating.
MTN fell 0.8 percent to R110. Africa's biggest cellular operator sold R2 billion of bonds to repay existing debt, according to Rand Merchant Bank, which arranged the sale with Standard Bank. Rival Vodacom added 1.3 percent to close at R60.76.
Telkom fell for a sixth day, sliding 2.1 percent to R32.85.
The company may lose more executives after chief financial officer Peter Nelson quit on Tuesday and chief executive Reuben September stepped down last week.
