Shares in Africa’s most-industrialized economy rallied to an all-time high, advancing for a fourth week, as mining companies surged.
Kumba Iron Ore Ltd., its parent Anglo American Plc and Exxaro Resources Ltd., South Africa’s third-largest coal producer, led gains in the FTSE/JSE Africa All Share Index as iron ore entered a bull market. The gauge is up 2.6 percent this week, the most since the five days through Jan. 30.
“Resource counters have been pushed up this week due mostly to increases in commodity prices,” Michele Santangelo, a money manager at Vunani Private Clients, said by phone from Johannesburg. “We’ve also seen some improvement in production updates from Anglo American and Kumba that have shown that they’re on track.”
Brent crude oil is headed for a third weekly climb and iron ore jumped almost 14 percent this week after BHP Billiton Plc said it was curbing the pace of its expansion by deferring port works in Australia, easing concern of a global glut. London-based Anglo said on Thursday that iron-ore output rose 19 percent, while platinum production increased 50 percent.
Kumba, which operates Africa’s largest iron-ore mine, added 22 percent over the past five days, its first weekly advance in five to pare losses this year to 36 percent. The all-share index rose 0.8 percent, the most since April 16, to 55,122.79 by 2:21 p.m. in Johannesburg.
“I don’t think this rally is going to last too long, particularly since its resource driven,” Santangelo said. “The resource stocks have been extremely volatile over the last while and will continue to be.”