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JSE boosted by resources rebound

Apr 25 2012 18:18 Reuters

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Johannesburg - South African stocks edged up on Wednesday in thin trade, with resource firms including platinum producer Lonmin leading the charge on expectations that demand may pick up in China.

Shares of AngloGold Ashanti, Africa's largest gold producer, ended a five-session drubbing to post a 1.98% gain, closing at R260.57.

"Resources had a bit of a bounce today. Industrial production out of China was better than forecast," said Andrew Flavell, a trader from Consilium Capital SA.

The benchmark blue-chip Top 40 - (Tradeable) [JSE:J200] index rose 0.66% to 30 021.05, while the broader All Share [JSE:J203] index closed up 0.61% higher at 34 028.81.

Shares of Lonmin gained 2.73% to R129.04 on the JSE. Lonmin's primary listing is in London.

Richemont, the maker of Cartier and Mont Blanc luxury watches, extended gains to close 2.9% firmer at R48.61. Data showed on Tuesday that Swiss watch exports rose by nearly 19% last month, buoyed by strong Asian demand.

Richemont is also listed in Switzerland.

Among the losers were South Africa's biggest retail bank Absa, down 0.61%, and media group Naspers, which fell 2.13% due to a slide in Chinese internet giant Tencent Holdings, in which it has a 30% stake.

Chinese internet firms were hit after Baidu, China's leading search company, set off alarm bells on Wall Street after a disappointing second-quarter revenue forecast raised doubts on its growth prospects.

Trade was thin with just 185 million shares changing hands, according to preliminary bourse data, down from the daily average of 256 million sold last year.

Advancers outnumbered decliners at 164 to 121, with shares in 79 firms unchanged.
jse  |  markets  |  stocks
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