JSE stocks end upComment on this story
South African stocks ended slightly higher on Monday as platinum mining stocks including Anglo American Platinum reclaimed lost ground after taking a beating for months.
Shares of the world's largest platinum miner jumped 2.66 percent to 482 rand as investors snapped up precious metals stocks, now regarded as cheap relative to their historical highs.
“While platinum stocks are facing a lot of problems such as questions over the market's fundamentals, costs and union issues, these are often overpriced, and I now think we will see what we call relief rallies,” said Afrifocus Securities portfolio manager Ferdi Heyneke.
The JSE Top-40 blue-chip index was up 0.4 percent at 29,189.72 and the broader All-share index gained 0.34 percent to 33,104.06.
Investors were also encouraged by the rise in European stocks and the euro's bounce back from two-year lows as Greek polls showed growing support for pro-bailout parties, which eased speculation about a disorderly exit by Athens from the region's single currency.
Much of the uncertainty has already been priced into local stocks, Heyneke said, adding banks and retails shares were also holding up well.
Shares in Impala Platinum, the world's second largest producer of the precious metal, gained 2.62 percent to 137.41 rand and Lonmin added 2.56 percent to 98.10 rand.
The world's three largest producers have taken a knock of close to 20 percent in the last three months due to concerns of over-supply and labour unrest.
Advantages outnumbered decliners by 152 to 120 and 68 stocks were unchanged. Total turnover was 659 billion rand on Monday. - Reuters