Johannesburg - South African stocks cruised
higher on Monday as global investor sentiment was lifted by an upbeat reading of
business activity in US manufacturing, but blue-chip heavyweight MTN Group [JSE:MTN] fell
again on concerns about a massive lawsuit.
MTN slid 4.5% to R128.80, extending Friday’s losses
after Turkish rival Turkcell filed a $4.2bn suit against the mobile phone
operator, alleging it bribed officials and lobbied support for Tehran’s nuclear
programme to win an Iranian licence.
Investors were happy to pile into other heavy-weight local stocks,
with the JSE Top 40 - (Tradeable) [JSE:J200] index gaining 1.39% to 30 132.52, a positive start to
the second quarter after ending the first three months of the year 4 percent
higher.
The broader All Share [JSE:J203] index added 1.25% to finish at
33 974.63.
Market watchers remain cautiously optimistic.
“Our market has been pulled back a lot by the resources - they have
pulled back our market performance. But when we eventually start seeing more
positive data, especially out of China, I think our market will start catching
up to others,” said Byron Lotter, portfolio manager at Vestact.
Gainers on Monday included Massmart, the retailer majority-owned by
Wal-Mart, which zoomed 4.4% higher to R160.68.
South African shares caught the global wave as the Institute for
Supply Management said its index of US factory activity rose to 53.4 from 52.4
in February, topping economists’ expectations of 53.0. This lifted shares
worldwide.
A higher spot gold price boosted bullion producers such as Gold
Fields, the world’s fourth largest producer of the precious metal, which climbed
almost 2.50%.
Aside from MTN, other blue-chip losers included ArcelorMittal South
Africa, which lost nearly 5% at one point on news it would be excluded
from a government programme to roll out infrastructure projects using local
materials.
It clawed back some of its lost ground to end the session 1.89% lower.
Advancers outnumbered decliners 189 to 100 with 84 shares
unchanged. A total of 191 million shares changed hands, preliminary data showed,
below the 200-day moving average of about 240 million shares.