Stocks gain despite platinum rout

Lonmin plunged 11.32% to a low of R15.90 per share.

South African shares rose on Friday although gains were capped by a fall in platinum stocks after Citigroup cut its price target for dual-listed Lonmin and UBS downgraded the stock to “sell”.

Lonmin plunged 11.32% to a low of R15.90 per share with its primary London-listed shares also down 12% to their lowest since listing in 1982.

“It basically got hammered out of London, it has got a lot of negativity coming out about other platinum shares,” said Thebe Stockbroking’s head of trading Bruno van Eck.

Platinum prices are trading around their lowest levels since 2009, only marginally above $1,000 per ounce.

Impala Platinum also dipped 0.91% to R50.01 and Anglo Platinum fell 1.23% to close on R253. Anglo American closed slightly weaker, edging down 0.14% to R168.62, while BHP Billiton gained 1.47% to close on R238.50.

The All Share Index gained 0.68% to end the week on 51800.7 points as global stock markets rallied on Greece would clinch a deal with international creditors and save itself from financial meltdown.

“We are definitely being led as to what is actually happing in offshore markets at the moment and what is happening in Greece, U.S and China,” said Van Eck.

Financial stocks carried the JSE higher with insurers Sanlam and Old Mutual both up more than 2%. Discovery gained 2.76% to R133.60.

The Top 40 Index climbed 0.75% to 46216.22, beating the wider bourse.

Trade was lively with 206 million shares changing hands, above last year’s daily average of 183 million.

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