Platinum stocks underpin JSE

Feb 06 2013 13:49
I-Net Bridge
Johannesburg - The JSE edged up to near-record territory on Wednesday‚ underpinned by a rally in platinum shares as the spot price of the metal lifted to its highest level in about a year.

At 12:41‚ the JSE All share [JSE:J203] index was up 0.14% at 40 722.29‚ with the platinum index gaining 1.98%.

“Appetite for resources appears to be strong. We believe that this is part of the sectoral rotation toward resource counters‚” said Mohammed Nalla‚ head of strategic research at Nedbank Capital. “A general sense of global optimism is also doing its bit for keeping the local market bid‚ and supportive of pro-cyclical stocks as signs of a recovery take hold. Global PMI numbers are presenting a picture of a recovery‚ albeit not broad based as yet.”

The spot price of platinum‚ which is used in catalytic converters on cars‚ and jewellery‚ was up 1.73% to $1 737.50 per ounce‚ the highest intraday level since February 23 last year.

“The supply-demand dynamics work in favour of platinum. There are increasingly growing expectations that demand will outstrip supply this year on the improving global economy while there have been cutbacks in production already‚” said Drikus Combrinck‚ portfolio manager at PSG Konsult in Pretoria.

Leading European shares were mixed‚ with London’s FTSE 100 gaining 0.46% at about noon SA time.

On the JSE‚ Anglo American Platinum (AMS) was up 2.14% to R459.62‚ Lonmin (LON) garnered 3.91% to R52.63 and Northam Platinum (NHM) rose 1.81% to R40.52; Kumba Iron Ore (KIO) climbed 1.59% to R612.48.

Among industrials‚ Bidvest (BVT) lifted 1.20% to R219.60 and Barloworld (BAW) gained 1.48% to R86.11.

Banker Abil (ABL) was up 2.51% to R31.06 and retailer The Foschini Group (TFG) recovered 2.55% to R118.29

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

jse  |  markets



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about...

Calling all social entrepreneurs - apply for The Venture now!

Are you running an innovative social business that's helping to create a better future? Then pitch for a share of The Venture’s $1m fund and receive world-class mentorship to help accelerate your business growth.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

New SAA board now has an aviation expert

Previous results · Suggest a vote