South African Stocks Surge to Record on Gold: Johannesburg MoverKamlesh Bhuckory
South Africa’s main stocks index rose to a record as gold-mining companies in the continent’s biggest producer of the metal rallied on higher prices.
The 166-member FTSE/JSE Africa All-Share Index advanced 1.8 percent to 42,497.30 by the close in Johannesburg. Spot gold prices climbed a fourth day after trading broke a key technical level and as Chinese consumption of the precious metal rose.
“The market is being led by gold and resource counters,” Kevin Brady, head of equity sales and distribution at Investec Ltd., said by phone from Johannesburg. “Most commodity prices are also better and this is supporting the risk-on trade.”
All six members in the FTSE/JSE Africa Gold Mining Index gained, with the measure rising 13 percent, the most since November 2008. The rally was led by Harmony Gold Mining Co., Africa’s third-largest producer of the metal, which jumped 21 percent to 39.56 rand. The gauge of South African platinum producers added 7.8 percent, led by Lonmin Plc’s 7.6 percent advance to 52.88 rand.
Gold consumption in China, the world’s second-biggest buyer of the metal and the largest purchaser of South African raw materials, rose 54 percent to 706.4 metric tons in the six months through June from a year earlier, the country’s gold association said today. The price of the metal rose as much as 2.3 percent to $1,344.40 an ounce, rallying after it broke above $1,320 amid technical buying, Afshin Nabavi, a senior vice president at bullion refiner MKS (Switzerland) SA in Geneva, said.