BR: Commodity gains send bourse to three-month highs
LOCAL assets rallied yesterday, with stocks hitting their highest levels in more than three months as a global upswing in markets boosted demand for commodities.
Emerging market equities rose to multi-week highs as robust corporate results and signs of a more measured rate of growth in Chinese manufacturing encouraged investors.
The Top40 index of blue chips rose 2.09 percent to 25 751.57 points, booking its highest close since April 26, helped by gains in mining shares. The broader all share index increased 1.86 percent to 28 883.19 points.
The Kagiso purchasing managers' index rose for the first time in five months in July, but stayed just below the 50 level that marks growth in business activity, indicating the key manufacturing sector is still struggling after the economy contracted last year.
Copper increased as much as 2.5 percent in London.
Anglo Platinum gained 3.56 percent to R728.
Impala Platinum jumped 2.28 percent to R202, even after wage talks with workers collapsed yesterday, likely leading to a vote on a strike this week.
"The market is driven by positive sentiment. It's just a bit of optimism following through from the Asian markets this morning and the US leading the way up," said Wilmar Buys at FFO Securities.
Elsewhere, Blue Financial Services rallied 9.09 percent to 12c, paring a 15 percent decline on Friday. The microlender said chief executive Dave van Niekerk had quit and chairman Sipho Twala would act as interim chief executive.
Coal of Africa advanced 7.34 percent to R11.70, paring a 9.9 percent decline on Friday. The company would seek an "immediate meeting" with Water and Environmental Affairs Minister Buyelwa Sonjica after she was quoted by Reuters as saying that Coal of Africa was engaged in "illegal activities".
Old Mutual rose 2.9 percent to R14.40 after Nedbank, which is controlled by Old Mutual, said it may benefit if the insurer were to sell its stake in South Africa's fourth-largest bank. Nedbank gained 1.2 percent to R136.84.
