Afran : S.African stocks up on miners, rand firms
on 2010/1/19 9:46:24
Afran

20100118

JOHANNESBURG (Reuters) - South Africa's bourse ended higher on Monday, in line with global stocks and lifted by miners as metal prices jumped, while the rand edged firmer on solid risk appetite and the firm platinum price.

The JSE Top 40 index of blue chips was up 0.71 percent to 25,459.13 points and the broader All-share index gained 0.61 percent to 28,099.70 points.

"All the action has been in the resources," David Shapiro, portfolio manager at Sasfin Holdings. "Otherwise, I can't see any overriding reason for the market to push up, it looks more like confidence on the global economy."

Miners led the gains as commodity prices cruised higher with platinum racing to its highest level in more than 17 months, boosting Anglo Platinum by 2.33 percent to 790 rand.

Platinum and palladium prices leapt, boosted by investment demand after the launch of U.S.-based exchange-traded funds this month.

The rise also helped support the rand, given South Africa's status as the world biggest producer of the precious metal, as did solid risk appetite.

The local currency was trading at 7.3925 against the dollar at 1530 GMT, 0.2 percent stronger than its previous close in New York.

Analysts said a further rise in manufacturing activity helped buoy sentiment but trade was relatively lacklustre given U.S. markets were closed for a holiday.

"Risk assets are generally doing ok and commodities are doing quite well, platinum specifically, which has given the rand a slightly firmer tone but there is not flow to push it," Nicholas Kennedy, emerging markets analyst at 4Cast, said.

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