UPDATE 1-S.African stocks hit near 7-month highs, led by Richemont, miners

  • Reuters
  • Forex News
UPDATE 1-S.African stocks hit near 7-month highs, led by Richemont, miners
Credit: © Reuters.

(recasts with stocks)

JOHANNESBURG, Jan 17 (Reuters) - South African stocks rose to near seven-month highs on Friday, underpinned by gains in heavyweight Richemont CFRJ.J and mining firms, while the rand fell against a broadly stronger dollar.

Richemont led the To-40 index .JTOPI higher, surging 5.82% after the world's second-biggest luxury goods group, reported a 4% rise in third quarter sales, helped by double-digit growth in China and South Korea. continued to do some heavy lifting, with the mining index .JMINI 2.66% firmer amid gains in gold, platinum and iron ore producers.

Gold edged higher on Friday but was on track to post its first weekly decline in six as solid Chinese data and a preliminary U.S.-China trade deal improved risk appetite. GOL/

Palladium XPD= jumped over 9% to register a record high as the market grapples with deep supply shortages, while platinum XPT= rose 1.01%.

This boosted Sibanye-Stillwater SGLJ.J by 5.32%, African Rainbow Minerals ARIJ.J by 4.54%, Impala Platinum IMPJ.J by 3.11% and Glencore (LON: GLEN ) GLNJ.J by 1.32%.

The bourse also got a lift from improved global risk appetite following Chinese growth figures that suggested the world's second-biggest economy was stabilising. Johannesburg All-Share index .JALSH rose 1.35% to 59,001 points, a level last seen on June 24, while the Top 40 index .JTOPI climbed 1.48% to 52,735 points.

In the currency market, the rand gave up morning gains as rate cut momentum gave way to the impact of a broadly stronger dollar. At 1603 GMT, the rand ZAR=D3 traded at 14.4650 per dollar, 0.4% weaker than its previous close.

Market participants were also cautious as the ruling African National Congress started a four-day National Executive meeting and the party's Lekgotla gathering.

The ANC is expected to discuss options for struggling state-owned firms such as power utility Eskom and South African Airways, as well as trying to unify dividing voices on proposals to nationalise the central bank.

Finance Minister Tito Mboweni came out against that plan this week on Twitter.

"Policy uncertainty remains the name of the game," Bianca Botes, Treasury Partner at Peregrine Treasury Solutions, said in a note.

In fixed income, the yield on the benchmark government bond ZAR186= was down 1 basis points at 8.18%.

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