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Miners drive JSE higher

May 22 2009 19:13

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Johannesburg - South African stocks bounced back on Friday, propelled by miners as commodity prices jumped.

The JSE top-40 index of blue chips climbed 2.07% to 20 310.65 points while the all-share index added 1.86% to 22 425.54 points.

"We are bucking the trend, European markets are relatively flat, it seems there's definitely buyers at the lower levels to pick up beaten down stock," said Andrew Todd, a trader at BOE Private Clients.

"The next important level to watch will be 23 000 on the all-share, if we can crack through that, you could possibly see further upside."

Miners led the rally, tracking firmer commodity prices with bullion climbing to a fresh two-month high as a dollar slide boosted buying of the metal as a currency hedge.

A rise in US stocks and more upbeat views of the recession-hit global economy also encouraged risk-taking by investors.

On the local bourse, gold miner Harmony was the biggest gainer, surging 9.41% to R97.10. Impala Platinum jumped 7.70% to R171.65.

Bourse and mining heavyweight Anglo American advanced 2.16% to R213 after brokerage house Nomura said the London-based firm might be vulnerable to a potential takeover from rival Xstrata.

Elsewhere, shopping malls owner Liberty International was among the few that weakened, falling 2.29% to R47, after announcing share placement results.

Brewer SABMiller eased 1.89% to R63.35 after broker JP Morgan downgraded the stock to neutral from overweight.

- Reuters

 
 
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