adminlargely due to liquidity constraints and uncertainties in relation to the indigenisation and empowerment law.
Having recorded its worst performance in the last two months, it is unlikely the market will recover although a bit of buying is expected from foreign investors now that a solution to the eurozone crisis has been found.
The stock market has so far recorded its worst performance for the year this month with the industrial index declining 11,10 points from 155,82 points in September to close at 143,90 points last Friday.
In the same period, the mining index also dropped 20,67 points from 152,42 points to 131,75 points.
Between August and October, the industrial and the mining indices declined by 17,68 points and 32,77 points respectively.
Market capitalisation also declined below the US$4 billion mark to US$3,98 billion in September from US$4,11 billion in August and further slumped to US$3,66 billion by close of trading last Friday.
Underpinning the trend are the uncertainties that are currently hovering in the economy in relation to the indigenisation and empowerment policy.
Such uncertainties have resulted in limited participation of foreign investors on the stock market as they move to protect their investments.
The debt crisis also affected the participation of foreigners who have been the major market players since the dollarisation of the economy.
After trades on Friday, the industrial index was higher at 143,90 points after gaining 1,01 points.
Econet, the country’s largest mobile phone operator recovered US2c to US370c. CBZ and TSL gained cent top close at US14c and US10c respectively.
Fidelity Life and Meikles gained US0,50c each to close at US14c and US23c respectively.
Three counters fell with Old Mutual losing by a cent to US130c, RTG retreated US0,30c to US1,5c and starafrica slipped US0,19c to US1,30c.
During the week, the industrial index added 0,11 points or 0,08 percent compared to week ending 21 October 2011.
Elsewhere, the FTSE/JSE Africa All Share Index was heading for its strongest close in six months, advancing 143,12, or 0,4 percent, to 32 595,67 by 12.54pm last Friday in Johannesburg, a sixth day of gains.
The index has climbed 3,6 percent this week. The following were among the most active stocks in the South African market on Friday.
Anglo American plc, the mining company that makes up about 9 percent of the benchmark stocks index, gained for a third day, climbing 0,5 percent to 305,41 rand.
Anglo American Platinum Ltd rose a second day running, climbing 2,1 percent to 571,71 rand.
Platinum gained for a sixth day, reaching a five-week high of US$1 659,75 an ounce.
Chemspec Specialties Ltd, a paint seller, rose for the first time in four days, advancing 4,7 percent to US0,45c.
The company expects an “improvement” in its losses per share for the six months to September 30 of as much as 80 percent from a year earlier.
Pick ‘n’ Pay, South Africa’s second biggest food retailer, headed for its highest close in almost three months, adding 2 percent to 40 rand.
The company was raised to “neutral” from “underweight” by JPMorgan Chase & Co., with a 12-month target price of 46,38 rand.
Online Reporter