Coronation Fund Managers: Platinum, retailers added after falls

Coronation Fund Managers is adding platinum mining companies and retailers after a sell-off by foreign investors of emerging market stocks improved valuations. Coronation, which oversees R522 billion in assets, was adding department-store operators including Foschini and Woolworths, Duane Cable, the head of South African equity, said this week. The fund manager was also buying Impala Platinum and Northam Platinum. “We have used further weakness to increase our holdings in Foschini. We are also selectively buying certain platinum equities and our preference remains the low-cost platinum producers, Impala Platinum and Northam.” The sell-off comes as South African consumers buckle under a nearly 25 percent unemployment rate, the slowest economic growth since the 2009 recession and rising fuel and power costs. Platinum producers are facing wage strikes and metal prices have dropped 19 percent over the past 12 months. Coronation ended unchanged at R79.30 yesterday. – Bloomberg