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Higher gold and platinum prices lift the JSE

by , 11 February 2014

Yesterday, the Johannesburg Stock Exchange closed the day firmly higher. A rally in the price of gold and platinum helped to push the local bourse to its third positive trading day in a row. Let's take a closer look at yesterday on the JSE…

Higher gold and platinum prices helped “gold and platinum producers” book gains yesterday on the JSE, reports Fin24. Leading the gold producers was AngloGold Ashanti. It rose “6.9% to R175.74”.

Yesterday, AngloGold Ashanti also announced it was selling “its Namibian unit for $110 million to focus on bigger operations,” notes IOL.

By close, the Gold Index was 6.13% higher, says BDLive. This as the price of gold added $9.45 from Friday’s close. The Platinum Index gained 3.43%. And the Industrials Index added 0.98%.

Platinum shines as the strike continues

In spite of the strike hitting the top three platinum producers being in its third week, all three had a good day, adds Fin24. Anglo American Platinum, Impala Platinum and Lonmin all rose “between 3% and 4%”.

The strike is also adding to fears of supply issues, says BDLive. This could put upward pressure on the platinum price,

The JSE Top 40 Index ended the day 1.33% higher at 41,321.02 points. The All Share Index closed 1.28% higher at 45,920.87 points.

Naspers also had a good day, ending “3.41% higher at R1,179.94,” notes BDLive. In spite of sitting on a “price earnings ratio of 63,” investors still have faith in the “growth potential from Chinese subsidiary Tencent’s large user base in China”. Naspers has a 34% stake in the company.

Rob Towell, senior equities trader at Consilium Securities, says it is “too early to speculate if the JSE was on a new, positive track,” reports I-Net Bridge. He added that the gains were mostly down to the performance of “three shares: Naspers, Anglo American and BHP Billiton”.

The casualties of the day were the banks, adds I-Net Bridge. The Banking Index fell 0.95%. With the rand continuing to trade a weak levels, worries about inflation and impending interest rate hikes hit the banking sector.

So overall a good day for the JSE. Let’s see if it can keep up its winning run.

Higher gold and platinum prices lift the JSE
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