S.African stocks rise as platinum producers up - CNBC Africa

S.African stocks rise as platinum producers up


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South African stocks inched higher on Wednesday. PHOTO: Getty Images

This is after long-suffering platinum producers such as Anglo American Platinum recovered on hopes court-mediated talks may end a bruising industry strike.

Transport and heavy equipment group [DATA BAW:Barloworld LTD.] was dragged down by weak global retail numbers from US manufacturer Caterpillar, which raised concerns about soft demand for earth-moving equipment.

[DATA AMS:Anglo American Platinum] rose 1.6 per cent 469.50 rand while fellow producer Lonmin surged 7.5 per cent to 44.28 rand on hopes negotiations could put an end to South Africa's longest and costliest mining strike.

Traders said the shares also benefitted after being sold in recent weeks.

"What you are seeing are some bargain hunters coming in and nibbling off from the bottom. From a technical point of view, [DATA LON:Lonmin Plc] is probably in the oversold territory," said Martin Lentsoane, a trader at Lehumo Capital.

The benchmark Top-40 index inched up 0.16 per cent to 44,629.81, while the broader All-Share index edged up 0.06 per cent to 49,648.12.

Barloworld, the sole dealer of Caterpillar's mining and construction machines in southern Africa, slumped 4.8 per cent to 107.60 rand after earlier hitting a two-month low after Caterpillar reported a 13 per cent drop in retail demand for machines.

Industrial equipment distributor Eqstra followed Barloworld down, shedding 3.3 per cent to 7.15 rand.

[DATA MDC:Mediclinic International Limited] gained 2 per cent to 79.60 rand after the private hospital group reported a 46 per cent rise in full-year profit as a weaker rand boosted overseas revenue.

(READ MORE: Mediclinic’s revenue boosted by its international divisions)

A total of 178 million shares traded hands, according to preliminary data from the Johannesburg bourse, with 188 shares declining and 120 advancing.