Investor sentiment on about-turn helps SA local stocks to rally

A staff member stands beside an electronic board showing Hong Kong share index outside a local bank in Hong Kong, Wednesday, Feb. 19, 2020. Asian shares are mostly rising despite continuing fears about an outbreak of a new virus that began in China, which sent regional indexes mostly lower recently. (AP Photo/Kin Cheung)
JOHANNESBURG – Firms stockpiling on precious metals and minerals as well as growing expectations of China injecting a stimulus package to ease the industrial effects of the coronavirus outbreak put investor sentiment on an about-turn that helped local stocks rally sharply from the Tuesday losses after foreigners sold $4.45billion (R66.85bn) worth of shares, leading to the biggest net outflow since November.

Mining stocks benefited from the market’s largesse with Impala gaining 4.46percent to R170.90, AngloGold 5.24percent to R31.49, Gold Fields 9.57percent to R10.60 and DRDGold 6.06percent to R10.50.

Platinum miners also inched up, with Amplats leading the rally 6.72percent to R139.56, while Northam inched up 7.93percent to R148.82, Harmony 9.28percent to R53.45, Royal Bafokeng 6.05percent to R59.81, and African Rainbow Minerals 2.28percent to R168.50.

Analysts said the upswing was as a result of the sharp turn in gold which broke the $1600 (R24 037) an ounce barrier, and palladium prices were up 6percent to $2785 an ounce, which saw both sub indexes rise to the highest level in nine years.

The sub index of gold producers was up 4.4percent to the highest level since December 2011, while the sub-index for platinum producers rose 5.9percent to the highest since April 2011

Source: iol.co.za