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
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