Bloomberg News

South African Stocks Have Biggest Weekly Drop in 4 on Weak Data

June 03, 2011

June 3 (Bloomberg) -- South African shares had the biggest weekly drop in four as U.S. unemployment rose in May and oil fell, damping the outlook for commodities companies and curbing bets on emerging-market assets.

The FTSE/JSE Africa All Share Index declined for a third day, losing 1 percent to 31,575.65 by the 5 p.m. close in Johannesburg, taking the weekly loss to 2.5 percent. BHP Billiton Plc, the world’s biggest mining company, slumped 1.4 percent to 255 rand, an 11-week low, while Sasol Ltd., the world’s largest producer of auto-mobile fuel from coal, slipped 1.6 percent to 347.03 rand.

Oil extended declines after a U.S. Labor Department report showed employers in May added the fewest number of workers in eight months and unemployment unexpectedly rose to 9.1 percent, underscoring Federal Reserve concerns the expansion is failing to boost the labor market.

“We have had such a bad week of data and are now tracking the global markets,” David Shapiro, an analyst at Johannesburg- based Sasfin Holdings Ltd., said by phone.

--Editors: Ana Monteiro, Peter Branton

To contact the reporter on this story: Sikonathi Mantshantsha in Johannesburg at smantshantsh@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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