Johannesburg - Shares of Aquarius Platinum [JSE:AQP] soared over 10% to a two-week high, extending a rally sparked by a Nomura upgrade. Rival Lonmin [JSE:LON] also extended gains following shareholder approval on Monday of a $817m rights issue to repair a battered balance sheet.
At 12:05, Aquarius shares traded over 10% higher at R6.24, its highest level since 6 November, according to Thomson Reuters data. Lonmin shares were 6% higher at R39.88.
In a research note to clients on Monday, Nomura raised its rating for Aquarius to "buy" from "neutral" and for Lonmin to "buy" from "reduce."
Nomura said the wave of violent strikes that have swept South Africa's platinum mines this year have reduced supply to such an extent that the price of the white metal and shares of companies that mine and produce it should rally.