JOHANNESBURG (Reuters) –Â South Africa’s main stock indices inched to record highs on Thursday, tracking an upbeat tone in major overseas markets, with mining shares adding the most points as metal prices advanced.
Bourse and mining heavyweight Anglo American gained 2.66 percent to 279.65 rand and rival BHP Billiton was up 1.54 percent at 367.21 rand.
Copper prices held near their highest level in more than four months with investors expecting that a recovery in the economies of the United States and top consumer China will help spur demand for industrial metals.
Investors have been snapping up equities in Africa’s most advanced but ailing economy this week, largely unfazed by an open-ended strike by more than 200,000 steel and engineering workers and views that valuations are stretched.
The JSE Top-40 index inched up 0.13 percent to 46,951, after setting a record 47,143 earlier. The broader All-share index was up 0.07 percent at 51,918.
“Until the interest rates in the U.S. start rising, the trend is upwards,” said Owen Nkomo, executive partner at Inkunzi Investments. “The market may be over-valued but the yields are still better than what you would get in the U.S. or Europe.”
Among the fallers, strike-hit Nampak Ltd dipped 0.67 percent to 37.29 rand after its head of human resources said about 40 percent of its metals and rigid plastic employees had not reported for work since Tuesday.
Steinhoff plunged 8.54 percent to 54 rand, reflecting the dilutive impact of the furniture maker and retailer’s 17.8 billion rand ($1.7 billion) rights issue and sale of new shares to international investors.
Trade was active with about 260 million shares changing hands with 153 stocks advancing while 178 declined.
($1 = 10.7515 South African Rand)
(Reporting by Tiisetso Motsoeneng; Editing by Joe Brock)
