adminresponse to an announcement from Anglo American Platinum (Amplats), the world’s biggest producer of the metal, that it will put four high-cost shafts on care and maintenance and sell its Union mine.
Market participants were also awaiting mining data due later in the day.
At 9.30am‚ the all share index was up by 0,26 percent at 40 249,38 points‚ with the top 40 index adding 0,31 percent to 35 782,65 points.
The platinum index surged by 3,02 percent, after the price of the metal jumped from US$1 651 to US$1 700 overnight and regained its premium to the gold price for the first time since March 2012.
On the release of mining production figures Absa Capital released the following note: “We expect a slight improvement from the 7,7 percent year-on-year decline registered in October, but the upside may be limited by a high base. While some categories may improve on rising global demand, recovery from mining disruptions usually takes some time.”
The National Union of Metalworkers of South Africa planned to protest yesterday against the 16 percent annual electricity price increase Eskom has applied for over the next five years.
“Nersa is currently holding public hearings to discuss the price increase, which could be lowered towards something more in line with CPI inflation,” Absa Capital said.
“Although the 16 percent rise will probably translate into an unchanged year-on-year rise in the CPI basket, its contribution to the headline figure will be amplified, as electricity’s weight in the basket will rise from January onwards.”
Among individual shares on the JSE‚ Impala Platinum surged 3,27 percent to 175,25 rand, while Lonmin jumped 6,45 percent to 49,50 rand and Aquarius added 3,17 percent to 9,44 rand.
Amplats, however, was just 0,6 percent higher at 493,99 rand. Shoprite rose 1,34 percent to 190,51 rand, after shedding value on Monday after a weaker than expected trading update.
Basil Read Holdings gave up 2,15 percent to 10,45 rand, while Murray & Roberts gained 1,12 rand to 25,28 rand. — BusinessDay.
Online Reporter