Barloworld hits month highComment on this story
Johannesburg - Barloworld, a South African seller of equipment to mining and construction companies, rose to the highest in more than a month after biggest supplier Caterpillar rallied on an improved growth outlook.
Barloworld advanced as much as 3.9 percent and traded 3.3 percent higher at 98.63 rand a share by 4:21 p.m. in Johannesburg, the highest since April 3.
More than 650,000 shares traded, about 78 percent of the three month daily average.
Caterpillar, the world’s biggest construction and mining equipment maker, has gained more than 8 percent since it cut its 2013 profit forecast on April 22 and rose 3.2 percent on May 3, according to data compiled by Bloomberg.
Barloworld’s share price appears to be responding to Caterpillar’s rally as products from the Peoria, Illinois-based company account for two-thirds of its earnings, Mark Hodgson, an analyst at Cape Town-based Avior Research (Pty) Ltd., said in a an e-mailed response to questions.
“Global investors appear more optimistic around better US job numbers and global growth outlook,” he said.
The FTSE/JSE Africa Mining Index rose for a second consecutive day, advancing 0.6 percent to 27,764.44 by 3:57 p.m. in Johannesburg.
Anglo American Plc rose for a third day, gaining 1.3 percent, while BHP Billiton Plc advanced 1 percent.
The two companies are customers of Barloworld, according to a presentation on its website. - Bloomberg News