The mine workers unions have decided to support the civil servants with a sympathy strike,which means they won't continue to work even if they get what they ask for in their own strike.Two years ago a strike was averted as both sides settled the plats wage dispute.They now say their aim is to harm the economy if they dont all get want they ask for,a very sad state of affairs.Of course jobs would be destroyed as well and we will become less productive.Add to this a negative rate outcome and the future close out in a couple of weeks time.As far as resources go,a great deal will depend on the perception of what is happening here,by overseas investor /traders.The Standard says STAY LONG,and other people that follow charts should take note that this can cut across any bullish forecasts for the imediate future.
I'm in the process of selling my AMS and AGL CALLS as well as my IMP installments,i'm holding on to my AGL installment as i want to share in the Mondi sell off,however with a short stop-loss as i can probably get in again at a lower price in a couple of weeks time.The market is too choppy to take PUTS at this stage.I've sold all other local resource shares and the only major shares i now hold are a small amount of TKG and REM installments and GND.I hold no local property at this stage,my other overseas holdings are LBT,RCH and SAB.
Hi Barry Just a quick contrarian thought. I agree that the strike may harm sentiment, but with the Platinum shares the world has no choice it's SA mines or nothin. So this dip you anticipate looks like a good buying not selling time. What do you think.
i agree in part with john. the interesting side effect is a reduction in production will lead to a reduction in supply of platinum, meaning the platinum price is likely to rise. so question would be will the rise in platinum price (and related profit margins for plat co's of existing metal) offset the negative sentiment and the loss of production? probably not, but clearly not as simple as a straight out knock to plat co's. but that's just my top of head thought on the matter
Kripto,John,u r both right,i'm now out of AGL as well now,but how ever i think plats and other resources are the best thing for our country.We should able to buy at more realistic prices as lets face it resources have run too hard for now.And we shall" ALWAYS BE SAVED BY THE BELL" with our exchange rates.I now expect the exchange rate to weaken by year end to around R4.70 to the Dollar ,which should negate part of the wage increases and other damage done.I'll become a serious buyer from July onwards.