* Main indices up 0.5 percent
* Exxaro in biggest one-day gain in four months
By Tebogo Mahlaela
JOHANNESBURG, July 5 (Reuters) – South African shares gained
slight ground on Thursday, buoyed by three global central bank
rate cuts to jump start economic activity, boosting miners such
as Kumba Iron Ore.
Minerals are South Africa’s main exports and roiling
economies in its trading partners often mean slower growth at
home. Diversified miner Exxaro added 3.4 percent to
205.43 rand, its biggest one-day rise in four months.
“Resources companies like Kumba and Exxaro moved up quite
sharply because people were expecting the rate cut in the ECB,”
said Michael Carlsson, a trader at Consillium Capital.
“It’s a win-win situation. Equities are in play at the
moment and any good economic news that comes up will support
equities and if we have any bad data coming out, stimulus and
quantitative easing will come in and help support the markets.”
The Top-40 index rose 0.5 percent to 30,057.03 and
the All-Share index added a similar margin to
34,222.58.
Kumba ended 3.4 percent stronger at 579.75 rand.
Continued…
