Stocks in Africa’s most-industrialized economy rallied on Tuesday as gold and platinum prices recovered to near four-week highs.
The benchmark FTSE/JSE Africa All Share Index gained 1.3 percent to 52,698.65 by 10:45 a.m. in Johannesburg, rising for the first time in three days. Lonmin Plc, the third-largest platinum producer, was the biggest gainer, climbing as much as 15 percent, the most on a closing basis since February 2009. The shares are up 8 percent since falling to a record on August 6.
Platinum climbed for a fourth day, adding 1.1 percent to $996.60 an ounce, the highest since July 16. Gold gained 0.8 percent to $1,113.44 an ounce. South Africa mines about 70 percent of the world’s platinum, and is the sixth-biggest gold producer.
Rising metal prices are “a big driver of that movement you’re seeing at the All-Share level,” Sean Ashton, chief investment officer at Anchor Capital, said by phone from Johannesburg. “That would be on the back of the sector itself having been under significant pressure of late.”
Harmony Gold Mining Co., South Africa’s third-largest producer of the metal, rose 11 percent, while Anglo American Platinum Ltd., the biggest platinum miner, advanced 7.4 percent.