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Johannesburg - South African stocks scaled record peaks on Tuesday, with Anglo Platinum (Amplats) [JSE:AMS] blazing the uphill trail after sending force majeure notices to some suppliers, which should allow it to conserve cash in the face of a crippling strike.
The share price of Amplats, the world's top producer of the precious metal, surged 3.45% to R490 on the news.
"They have to make use of all avenues to protect the company and the balance sheet and this is a good way to hold back on cash spending in very difficult times," said Abri du Plessis, chief investment officer of Gryphon Asset.
"But one must bear in mind that the force majeure is a difficult clause to enforce in South Africa," he said.
Amplats and rivals Impala Platinum (Implats) [JSE:IMP] and Lonmin [JSE:LON] have been hit by an almost 10-week strike over wages by the Association of Mineworkers and Construction Union (Amcu).
The benchmark Top-40 index booked a record close of 43 320.65, climbing 0.75%. The wider All-share index, which shot through the 48 000 level for the first time on Monday, also posted a record close of 48 104.98, adding 0.7%.
Du Plessis said the wider market was up in line with global peers after investors took reassurance from remarks by the head of the Federal Reserve, who reinforced the need for "extraordinary" commitment to support the US economy.
"If the market is running on news like this it might not be able to sustain itself," he said, noting that the perceived need to maintain low interest rates in the United States was a sign that the global economy was not in great shape.
E-commerce and media group Naspers [JSE:NPN] added 2.5% to R1 190.00.
The company named Jim Volkwyn head of its pay-television businesson Tuesday as South Africa's largest company by market value pushes the lucrative segment into more homes on the African continent.
Advancers outnumbered decliners 162 to 151, while volumes were fairly brisk as around 222 million shares changed hands, according to preliminary bourse data.
The share price of Amplats, the world's top producer of the precious metal, surged 3.45% to R490 on the news.
"They have to make use of all avenues to protect the company and the balance sheet and this is a good way to hold back on cash spending in very difficult times," said Abri du Plessis, chief investment officer of Gryphon Asset.
"But one must bear in mind that the force majeure is a difficult clause to enforce in South Africa," he said.
Amplats and rivals Impala Platinum (Implats) [JSE:IMP] and Lonmin [JSE:LON] have been hit by an almost 10-week strike over wages by the Association of Mineworkers and Construction Union (Amcu).
The benchmark Top-40 index booked a record close of 43 320.65, climbing 0.75%. The wider All-share index, which shot through the 48 000 level for the first time on Monday, also posted a record close of 48 104.98, adding 0.7%.
Du Plessis said the wider market was up in line with global peers after investors took reassurance from remarks by the head of the Federal Reserve, who reinforced the need for "extraordinary" commitment to support the US economy.
"If the market is running on news like this it might not be able to sustain itself," he said, noting that the perceived need to maintain low interest rates in the United States was a sign that the global economy was not in great shape.
E-commerce and media group Naspers [JSE:NPN] added 2.5% to R1 190.00.
The company named Jim Volkwyn head of its pay-television businesson Tuesday as South Africa's largest company by market value pushes the lucrative segment into more homes on the African continent.
Advancers outnumbered decliners 162 to 151, while volumes were fairly brisk as around 222 million shares changed hands, according to preliminary bourse data.
