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South African stocks extend gains to 4th day, led by miners
January 22, 2015 / 3:52 PM / 3 years ago

South African stocks extend gains to 4th day, led by miners

JOHANNESBURG, Jan 22 (Reuters) - South African stocks ended higher on Thursday, extending their winning run to a fourth straight day with miners among the biggest gainers after the European Central Bank announced measures to stimulate the euro zone economy.

Investors were betting that mining houses could benefit if the ECB’s stimulus results in improved economic growth, said Abri du Plessis of Gryphon Asset Management in Cape Town.

“If they can kick-start the global economy there will be an increase in demand for commodities. That’s what investors are hoping for and that’s what is driving the miners,” he said.

Bourse heavyweight Anglo American climbed 2.8 percent to 198.50 rand and rival BHP Billiton was up 1.9 percent to 251.48 rand.

The benchmark JSE Top-40 index was up 0.56 percent at 43,725 and the broader All-share index gained by a similar margin to 49,872.

However, du Plessis cautioned that investors might be too optimistic about the benefits of more stimulus, given the underlying economic fragility.

“There’s no guarantee that this kind of money printing is going to work.”

Naspers rose 0.2 percent to 1,636.01 rand after Morgan Stanley raised its target price on the media and e-commerce firm.

Trade was robust with 226 million shares changing hands, above last year’s daily average of 183 million shares, according to preliminary bourse data. (Reporting by David Dolan and Tiisetso Motsoeneng; Editing by James Macharia)

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