South African shares rose for a fourth straight session on Monday after the world’s biggest platinum producer, Anglo American Platinum, said it expected interim earnings to increase by almost 15 times.
Shares in Amplats closed up 1.2% despite platinum weakening by 0.4% after it said earnings were recovering from last year’s five-month strike and would benefit from an after-tax gain. Its results are due next Monday.
Lonmin extended Friday’s losses, dropping nearly 11% to R14.40 on the fall in platinum prices and as Glencore’s divestment continued to weigh.
Financials were among the standout gainers. Sanlam rose 3.3% and Capital & Counties Properties 2.8%.
The JSE Top-40 index closed up 1.5% at 46,216 and the broader All-Share index gained 1.3% to 52,474, its highest level in more than two-weeks.
The market also benefited from a rally in equity markets around the world welcoming new talks to keep Greece afloat with a bailout and within the euro zone, even as the single European currency weakened with a final Greek deal yet to be agreed.
“I think there’s probably a continuation of a relief rally,” Pan-African Asset Managers portfolio manager Julian Masson said.
“We are not that worried about Greece to be honest, we are more worried about China,” he said.
South Africa’s biggest trade partner, China, saw export sales unexpectedly rise for the first time in four months in June and imports fall again, creating some optimism that tepid trade flows are picking up.
On the downside, Royal Bafokeng Platinum lost 5.1% to R38.91 after saying it expected to swing into a loss in the first half of its financial year because of lower prices, reduced output and the impact of a one-off tax charge.
Telkom SA fell 6.4% to R56.96 as the South African fixed-line telecoms operator looks for alternative ways to reduce labour costs after a court decision forced it to put on hold plans to axe 4,400 jobs.
Heavyweight Kumba Iron Ore dipped 1.5% to R119.82 as iron ore futures in China stabilised after last week’s equities-driven rout butShanghai steel resumed its downturn on worries over weak demand.