Monday, 30 March 2015 21:26
JOHANNESBURG: South African stocks advanced on Monday with strong gains in the resource sector, spurred by mining giants BHP Billiton and Anglo American
Shares in Anglo American rose 2.78 percent to 190.74 and BHP Billiton closed 2.04 percent higher at 272.54 rand, buoyed by hopes that a stimulus to China’s economy could translate to a greater appetite for emerging market commodities.
Chinese stocks surged to seven-year highs, helped by Beijing’s unveiling of an ambitious plan to build a modern Silk Road to Europe and Africa.
“It is looking like the Chinese may add some stimulus and it certainly helped the resources, Anglo, Billiton, Glencore, all of that across the board,” said Greg Katzebellenbogen, a director at Sanlam Private Wealth.
Shoprite and Mr Price were also among the top performers on the Top-40 index, boosted by positive sentiments out of China and the possibility that U.S. interest rates will not be hiked immediately, feeding investor appetite.
Shoprite rose 3.65 percent to end at 163.34 rand while Mr Price closed almost 3 percent up to 259.50 rand.
The benchmark Top-40 index rose 1.34 percent to 46,293 while the All-share index ended 0.83 percent higher at 52,455.
Trade was brisk, with 287 million shares changing hands according to preliminary bourse data. Last year’s daily average was 183 million shares.
Copyright Reuters, 2015
