* Platinum stocks lead South African JSE higher
* Top-40 Index 0.4 percent higher
* Banks and retail shares “holding up”
JOHANNESBURG, May 28 (Reuters) – South African stocks ended
slightly higher on Monday as platinum mining stocks including
Anglo American Platinum reclaimed lost ground after
taking a beating for months.
Shares of the world’s largest platinum miner jumped 2.66
percent to 482 rand as investors snapped up precious metals
stocks, now regarded as cheap relative to their historical
highs.
“While platinum stocks are facing a lot of problems such as
questions over the market’s fundamentals, costs and union
issues, these are often overpriced, and I now think we will see
what we call relief rallies,” said Afrifocus Securities
portfolio manager Ferdi Heyneke.
The JSE Top-40 blue-chip index was up 0.4 percent
at 29,189.72 and the broader All-share index gained
0.34 percent to 33,104.06.
Investors were also encouraged by the rise in European
stocks and the euro’s bounce back from two-year lows as Greek
polls showed growing support for pro-bailout parties, which
eased speculation about a disorderly exit by Athens from the
region’s single currency. [ID: nL5E8GS26C]
Much of the uncertainty has already been priced into local
stocks, Heyneke said, adding banks and retails shares were also
holding up well.
Continued…
