Feb. 26 (Bloomberg) -- South African shares gained, led by Anglo American Plc. as precious metals advanced and a share-price estimate was raised at Merrill Lynch & Co.

Old Mutual Plc climbed by the most in more than eight months after second-half profit fell less than analysts estimated and the company raised its dividend.

The FTSE/JSE Africa All Share Index added 151.58, or 0.6 percent, to 26,943.97 at 2:22 p.m. in Johannesburg, as 78 stocks gained, 56 fell and 30 were unchanged.

Gold for immediate delivery gained 0.4 percent to $684.95 an ounce, trading near a nine-month high in London. The UN Security Council's five permanent members are set today to discuss further sanctions against Iran, the Middle East's second-biggest oil producer over its enrichment of uranium.

Platinum advanced as much as 1.2 percent to $1,248 an ounce. Investors often buy gold and platinum as a safe a haven investment during times of political tension.

Anglo American, the world's second-biggest mining company, rose 4.50 rand, or 1.3 percent, to 365.50. Separately, Merrill Lynch & Co. raised its share-price estimate for Anglo to 3050 pence. The bank said positive catalysts included the new chief executive officer, the company's restructuring progress and further capital returns.

Shares of DRDGold Ltd. surged 29 cents, or 5.3 percent, to 5.81 rand in Johannesburg. The stock climbed 10 percent to $0.86 in the U.S. on Feb. 23 as the price of gold rose. Anglo Platinum Ltd., the world's largest platinum producer, rose 28.99 rand, or 2.8 percent, to 1,072.

Old Mutual, Britain's third-largest insurer, advanced 1.33, or 5.3 percent, to 26.56 rand, the biggest gain since June 9. Old Mutual posted net income of 836 million pounds in the year to Dec. 31. That exceeded the 669.6 million pounds analysts surveyed by Bloomberg had expected. The company said its second-half dividend will increase by 14 percent.

The following stocks also rose or fell in Johannesburg. Symbols are in parentheses.

Astrapak Ltd. (APK SJ), the country's second-biggest packaging company, dropped 79 cents, or 5.7 percent, to 13.11 rand. Astrapak said annual profit fell after the company's tax bill was boosted by a reassessment.

Glenrand MIB Ltd. (GMB SJ), an insurance risk adviser, climbed 3 cents, or 1.9 percent, to 1.61 rand. The company's net income rose more than 500 percent to 56.5 million rand after certain ``adjustments.'' The stock has gained 4.6 percent since Feb. 23 when Glenrand informed shareholders it expected first- half profit to quadruple.

Grindrod Ltd. (GND SJ) climbed 53 cents, or 3.1 percent, to 17.80 rand. Grindrod may spin off its shipping business, the largest in Africa, as part of a plan to ``unlock value'' for shareholders, Chief Executive Officer Alan Olivier said.

Another option for the company, based in South Africa's eastern port city of Durban, is to seek a secondary stock listing in London, Olivier added.

Mustek Ltd. (MST SJ), a computer maker, climbed 55 cents, or 5.3 percent, to 11 rand after it said its in talks that may affect the company's share price.

Peermont Global Ltd. (PTG SJ), a casino operator, slid 74 cents, or 5.5 percent, to 12.75 rand after it said a group led by London & Regional Properties decided not to challenge a 4.26 billion-rand ($600 million) offer for the company.

To contact the reporter on this story: Janice Kew in Johannesburg at jkew1@bloomberg.net

Last Updated: February 26, 2007 07:52 EST