South African stocks advanced on Tuesday, buoyed by gold producer AngloGold Ashanti as well Shoprite Holdings, which announced plans to expand its retail network in Africa.
AngloGold’s shares surged more than 4% during the session but ended 3.3% up at R86.88.
Africa’s biggest bullion producer said on Monday it had swung to second quarter profit after it implemented cost-cutting initiatives to counter falling gold prices.
Shoprite, Africa’s biggest retailer by sales, rose as much as 3% after it announced plans to accelerate its expansion on the continent and reported a 10.8% jump in full-year earnings.
The shares ended 1.39% higher at R160.25.
The Johannesburg Securities Exchange’s Top 40 Index ended 0.40% higher at 45,467 and the broader Allshare index rose 0.45% to 50,977.
Shares in platinum producer Lonmin fell as much as 7% during the session, before closing 4.5% down to R680.
“Most traders are dumping the stock because the company is at a risk of bankruptcy and the market is factoring this in. The depressed platinum prices are also a factor,” said Rabi Thithi, a trader Avior Capital.
The platinum sector has been under huge stress, with the spot price at 6-1/2 year lows below $1,000 an ounce, while power and labour costs in South Africa have risen sharply.
Trading activity was robust with 221 million shares changing hands, above last year’s daily average of 183 million shares.