adminPresident Jacob Zuma’s chances of re-election as ANC leader were hurt after the main opposition party won the right to review potentially damaging documents from a discontinued corruption case against him in 2009.
Absa analysts Caroline Learmonth and Ian Rossouw, who downgraded Anglo to “underweight” from “equal weight”, said unbundling of the company’s platinum business would have put it at the top of the target list for the bigger competitors.
Platinum prices have fallen about three percent over the last month.
Absa also cited Anglo’s legal worries stemming from Chilean rival Codelco’s claim on a stake in its assets in Chile’s centre-south.
The brokerage also cut ArcelorMittal South Africa (Amsa), a unit of the world’s biggest steelmaker ArcelorMittal and African Rainbow Minerals, to “underweight” from “equal weight” on an estimated stronger rand leading to weak earnings forecast.
Earlier in February, ArcelorMittal South Africa slid into a full-year loss on higher raw material costs, lower output and weaker sales and warned that a pick-up in demand from key construction industry customers has yet to materialise.
Absa analysts cut their price targets on several South African mining companies including BHP Billiton, Kumba Iron Ore, Anglo American, ArcelorMittal South Africa and African Rainbow Minerals. — fin24.
Online Reporter