SA stocks jump on global rally, Taste on the rise

JOHANNESBURG (Reuters) – Investors piled into South African stocks on Tuesday as Taste Holdings rose after buying a watch-maker and as indices tracked global markets which were lifted by prospects of ECB bond purchases.

The blue-chip JSE Top-40 index jumped 2.13 percent to 43,385 and the broader All-share index was up more than 2 percent during trade, closing 1.96 percent up to 48,530.

The indices have recovered from eight-month lows seen last week.

"There was a lot of panic in the last three weeks and now this is the relief," said Gary Booysen, head of trading at Vunani Private Clients.

He added that global headlines such as Hong Kong protests and economic worries about China and Europe "spooked investors".

The Reuters report that the ECB is considering buying corporate bonds to help the euro zone economy sparked a rally in the shares of some European countries and led the broader gains in European stocks.

Shares of restaurant group Taste Holdings rose after the company said it would buy the high-end Arthur Kaplan Jewellers to reach more affluent consumers.

Taste, which recently signed an exclusive agreement to develop Domino's Pizza in Africa's most advanced economy, closed 1.7 percent higher at 2.95 rand.

"Pizza and watches is a weird combination, but they could definitely do well," Booysen said

Kumba Iron Ore led decliners on the Top-40 index, falling 1.12 percent to 286.75 rand on worries about economic growth in China, the biggest importer of the steel-making ingredient.

Kumba is the worst performing stock on the blue-chips index this year as it battles with a low price for iron ore.

Trade was active with about 197 million shares changing hands, higher than last year's daily average of 175 million shares.