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Johannesburg - South African stocks booked a record close on Tuesday, rising 1 percent as higher metal prices lifted resource companies such as AngloGold Ashanti and Anglo American Platinum.
Gold hit its highest since late March on Tuesday, helped by fresh signs of interest from investors in futures and bullion-backed funds, while platinum reached a ten-month high.
Sentiment was also buoyed by strong performance in equity markets globally, prompting local investors to overlook concerns that South African stocks are too expensive after a string of record highs.
“Most market participants are well aware of the fact that the market is relatively elevated but for the moment 'trend' dominates all other considerations including macro fundamentals and valuations,” brokerage Imara SP Reid said in a research note.
The benchmark Top-40 index gained 1.1 percent to 46,481, its highest close on record, while the broader All-share index added 1.05 percent to 51,480.
Mining house Anglo American Platinum rose 4 percent to 479.21 rand while AngloGold Ashanti also jumped 4 percent, to 185 rand.
Local mining shares have also been helped after the longest and costliest strike in South African history ended last week with the signing of a three-year wage deal between the AMCU union and three platinum firms.
Shares of junior platinum producer Jubilee Platinum jumped 16 percent to 36 cents after it said it completed a successful smelter upgrade over the past quarter.
Trade was relatively slow, with 142 million shares changing hands, according to preliminary bourse data. A total of 189 shares advanced, while 104 declined and 57 remained unchanged. - Reuters