South African Stocks Drop to 3-Month Low on U.S. Economy, China
South African stocks declined to the lowest level in almost three months, led by global mining companies, as slower-than-estimated U.S. manufacturing output and concern China will raise rates sent metals lower.
The FTSE/JSE Africa All Share Index dropped 0.7 percent to 31,011.92 by 4:30 p.m. in Johannesburg. A close at that level would be the lowest since March 22.
Copper, nickel, lead and zinc retreated in London as data from the Federal Reserve showed output at factories, mines and utilities rose 0.1 percent in May, less than the 0.2 percent gain forecast by economists in a Bloomberg News survey. China’s borrowing costs may climb “in weeks, if not days,” according to an unsigned editorial in the China Daily today.
Anglo American Plc (AGL), the diversified mining company that makes up 9.9 percent of South Africa’s benchmark stock index, fell for the first time in three days, losing 1.6 percent to 318 rand while BHP Billiton Plc (BIL) slipped 1.8 percent to 252.80 rand.
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