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Johannesburg - South African stocks edged higher
for the second straight session on Thursday, adding just 0.13% as caution
about the euro zone kept investors from pushing prices higher after the recent
record run.
But Kumba Iron Ore defied the sluggish overall trend, as a
better-than-expected dividend and continued optimism about the outlook for
resources sent the company to a record high.
“Investors need a catalyst for either a move higher or lower and
Greece is definitely a hot topic again,” said Devin Shutte a trader at brokerage
Newstrading.
“I think you still want to be invested in the hot favourites... The
money to be made is still in the resources.”
The Top 40 - (Tradeable) [JSE:J200] index gained 0.13% to 30 599.35. Last week the
index hit its highest since May 2008.
The broader All Share [JSE:J203] rose 0.12% to 34 268.14. Last week it
hit a record high of 34 460.57.
Kumba, a unit of global miner Anglo American Plc and Africa’s
largest producer of the steel making ingredient finished up 1.9% at
R564.00 after hitting a lifetime high of R566.50.
News that leaders from major Greek political leaders had reached a
deal on reforms in return for a bailout came late in the session and sparked
little reaction in Johannesburg, where many investors are concerned that prices
may be overheated after the recent record run.
Johannesburg-listed shares of Kumba’s parent, Anglo, declined
however. The stock is one of the best performers among South African blue chips
so far this year, having risen nearly 18 percent as of Wednesday’s close.
Platinum miners, which have largely missed out on the resources
rally due to weakness in the platinum price, came under pressure again.
Impala Platinum fell 0.6% to R167.95. Its Zimbabwe unit,
Zimplats, reported a 68% decline in second-quarter profit, hit by the
drop in the spot platinum price.
Trade was relatively active, with 206 million shares changing
hands, according to preliminary exchange data. That compares to last year’s
daily average of 256 million shares.
Advancers outnumbered decliners 147 to 121, while 60 shares
finished flat.
