By Helen Nyambura-Mwaura
JOHANNESBURG, July 6 (Reuters) – South African shares ended
flat on Friday after a volatile session that saw investors
spooked by disappointing U.S. employment data pull resource
firms such as Harmony Gold, lower.
Kumba Iron Ore, a unit of Anglo American,
fell nearly 3.5 percent after the miner said earnings for the
first half would be lower than expected due to a fall in metal
prices.
“The resources are out of favour,” said Richard Juchniewicz,
a trader at SBG Securities.
“With all that’s been happening around the world, the
down-grading of growth forecasts of all these economies, people
are starting to get nervous about what this means for commodity
producers.”
U.S. non-farm payrolls expanded by just 80,000 jobs in June,
falling short of forecasts. A Reuters poll showed the market
expected 90,000 additional jobs.
The Top-40 index was flat at 30,056.92, and the
All-Share index edged up a mere 0.01 percent to
34,226.21.
Ten experts polled by Reuters expect the blue-chip index
will climb just another 2 percent by the end of 2012 because of
the country’s reliance for much of its trade on Europe, where
growth is grinding to halt.
Harmony Gold sunk more than 2 percent to 76.34 rand, leading
the gold index 1.7 percent lower.
Continued…
