Johannesburg - South African stocks rose on Monday even though resources shares came under pressure as Anglo American Platinum said it was reviewing options for its Rustenburg operations after a crippling five-month strike that ended last week.
A painful restructuring has been expected in South Africa's platinum sector, which is struggling with rising costs and depressed prices for the precious metal used for catalytic converters in automobiles.
“A big story coming through there and not surprising that the guys are deciding to cash in given that the sector has been very problematic,” said Martin Lentsoane, managing director of brokerage Lehumo Capital.
Amplats was down 0.31 percent to 461.07 rand.
Rival Impala Platinum, which was also hit by the strike, ended 1.04 percent lower at 106.88 rand.
Johannesburg's Top-40 rose 0.7 percent to 45,969 and the All-share index gained 0.63 percent to 50,945.
Generic drug maker Aspen Pharmacare was the top gainer of the Top-40 index, rising nearly 4 percent to 298.89 rand after it said comments made during a pre-closed period conference call with investors were “misconstrued” in the media.
The company's shares fell 9 percent last week from an intra-week peak of 318.36 rand on Tuesday amid media reports that management had “guided for a softer second half in South Africa”.
The firm said the remarks were taken out of context and were consistent with previous management statements.
Trade was relatively slow with about 132 million shares changing hands, according to preliminary bourse date.
Advancers outpaced decliners, 202 to 130. - Reuters
The reception area of the Johannesburg Stock Exchange. File picture: Leon Nicholas