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Rand gains, Anglo, Sibanye shine on deal

Sep 09 2015 18:36

(Shutterstock)

Company Data

ANGLO AMERICAN PLC [JSE:AGL]

Last traded 368
Change 10
% Change 3
Cumulative volume 1441068
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

ANGLO AMERICAN PLATINUM LIMITED [JSE:AMS]

Last traded 1104
Change 7
% Change 1
Cumulative volume 326341
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Sibanye Gold Limited [JSE:SGL]

Last traded 24
Change 0
% Change 2
Cumulative volume 3896397
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

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Johannesburg - Anglo American Platinum [JSE:AMS] and Sibanye Gold [JSE:SGL] helped lift the JSE on Wednesday after they sealed a major mining deal while the rand rallied on global hopes for a Chinese stimulus.

Amplats sold its labour-intensive Rustenburg mine to Sibanye for R4.5bn as it pivots more mechanised sites, a move that investors gave the thumbs up.

Sibanye added 5.4% to R18.50, while Amplats climbed 3% to R323.42 and its parent company, Anglo American [JSE:AGL], saw its shares shoot up almost 5.4% to R157.38.

Rustenburg has been a troubled asset for Anglo and analysts said it had done well to finally offload it.

"A positive step in improving Anglo's operating structure and investment rating, and boosts credibility of Anglo's management," RBC Capital Markets said in a note.

The benchmark Top-40 index rose 0.32% to 44 249 while the broader All-share index climbed 0.30% to 49 723, the second straight day of gains.

On the foreign exchange market, the rand also rallied for a second straight session, tracking global markets as hopes of stimulus out of China soothed investor sentiment.

The rand traded at R13.669/$ by 14:09 GMT, a 0.39% gain over Tuesday's close.

Government bonds also firmed, with the yield for the benchmark instrument due in 2026 falling 3.5 basis points to 8.455%.

"It is risk-on all of a sudden. Hopes of stimulus out of China have seen all risk assets rally. The rand is merely caught up in the surge", said John Cairns, a currency strategist at Rand Merchant Bank.

China's Finance Ministry said it would strengthen fiscal policy, boost infrastructure spending and speed up tax reform, reassuring global markets that Beijing can keep its economy on track.

Investors shrugged off local business confidence data for the third quarter which showed retail confidence fell due to a further slackening in sales volumes and declining profits.

jse  |  markets  |  currencies  |  equities  |  rand
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