Stocks edge down, driven by resources-related sales

February 26, 2010.

The Top40 index fell 0.87 percent to 23 975.37 points, while the all share index lost 0.75 percent to 26 731.85 points.

"It's mainly resources (driving the market lower). There are still a few concerns about the global economy," Sasfin's David Shapiro said, adding that worries over the euro remained the main driver.

Bourse and mining heavyweight Anglo American retreated 3.5 percent to R276.10, while rival BHP Billiton was down 2 percent to close at Rë.

Shares in Kumba Iron Ore, a unit of Anglo American, dropped 2 percent to R342.06 and ArcelorMittal South Africa, a unit of the world's biggest steel maker, lost 2 percent to close at R113.59.

Exxaro Resources declined 0.8 percent to R108.10, the lowest in more than a week. The coal producer said annual net income declined to R1 billion from R3.4bn. It also added that the cost of expanding its Grootegeluk mine to supply Eskom Holdings's Medupi power plant jumped by R500m because of delays completing an agreement.

Sasol dropped for a third day, sliding 1.6 percent to end the day at R277.10.

Crude oil fell 3 percent to $77.61 (R602) a barrel as US jobless claims and manufacturing orders trailed forecasts and the dollar strengthened, cutting demand for commodities as an alternative investment.

Massmart climbed for the first time in three days, adding 2.4 percent to R90.10 after it posted a decline in first-half profit but said it expected strong growth as the country's economic recovery gathered pace. The company said it could "comfortably grow" operating profits in the second-half and perhaps even for the full year.

Barnard Jacobs Mellet Holdings fell 6.8 percent to end the day at R2.90. The stockbroker expected a drop of at least 20 percent in fiscal full-year earnings.