Gold prices underpin South African share prices - CNBC Africa

Gold prices underpin South African share prices


by Reuters 0

South African stocks climb. PHOTO: therealasset

This saw a close at a three-week high as investors snapped up bullion producers such as AngloGold Ashanti that have benefited from a recent rally in the spot price.

Although spot gold was down on the day, a Friday rally that saw it touch its highest since Dec. 22 and its biggest one-day jump in 2-1/2 weeks filtered through to Monday's session after local markets had been closed for the Christmas holidays.

"Friday's sharp move was a typical non liquidity move, so naturally enough it gives back a bit today," Saxo Bank's head of commodity research Ole Hansen said. "We are less than 1 per cent away from where we finished a year ago, and I do not think we will sway much away from current prices."

(READ MORE: Gold sees biggest weekly rise in 2 months as stocks, dollar slip)

Johannesburg's Top-40 index ended 1.7 per cent higher at 44,477. The index has risen more than 7 per cent this year, adding to a 19 percent gain in 2013.

The wider All-share index added 1.6 per cent to 50,254, the first time it’s been above the 50,000 mark in nearly a month.

AngloGold was the highest gainer on the blue-chip index having climbed more than 5 per cent. Smaller producers Harmony Gold and Gold Fields added 7 per cent and 5 per cent respectively.

(READ MORE: Former African Barrick Gold to go underground at North Mara)

Trade was thin, with just 63 million shares changing hands with gainers outpacing decliners 215 to 102.