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JSE stocks rebound on bargains

Johannesburg - South African stocks ended higher on Monday, rebounding after three straight downward sessions, although traders said the main indices may have limited upside momentum.

Impala Platinum topped the gainers' list on the benchmark Top-40 index, rising 4.2 percent to 107.85 after the producer slumped more than 7 percent over the past three sessions.

The JSE is seen in this file photo: Leon Nicholas. Credit: INDEPENDENT MEDIA

Brokerage house Imara SP Reid said Monday's session was the an opportunity for some recently battered stocks to benefit from bargain hunting but broader gains would be short-lived.

“In our assessment, short term momentum is likely to be unsustainable, as general residual selling pressure continues to be a characteristic of the trading backdrop,” Imara said in a note.

South Africa's main stock indices have hit a string of record highs in recent weeks, leading some analysts to predict a correction as stocks become overbought.

The blue-chip JSE Top-40 index gained 0.58 percent to 45,998 points and the broader All-share index was up 0.63 percent at 51,239.

Other gainers were The Foschini Group, rising 3.79 percent to 122.11, after the retailer said it would deliver growth this fiscal year after customer defaults curbed profit increase the previous year.

Nedbank was up 2.37 percent at 237.90 rand ahead of the banking group's first-half results on Tuesday.

Trading was relatively thin with about 150 million shares changing hands, compared with about last year's daily average of about 176 million shares.

Advancers outnumbered decliners 207 to 110 with 55 issues unchanged, according to preliminary bourse data. - Reuters

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