The South African bourse headed north on Friday morning as investors bought shares in the country’s biggest miner Anglo American as investors hoped for a peek at a new draft mining reform charter.
Anglo — the market’s biggest stock accounting for 15,4% of total capitalisation — climbed 2,6% to R138,50, the top traded stock by deals. But it later pared its gains to R136,55.
The all share index was almost flat at 9,556.07.
”Everybody’s waiting to see the second draft of the charter today. There’s buying in Anglo ahead of the release,” said one trader.
But Minerals Department representative Kanyo Gqulu has vowed no-one outside the tight circle of negotiators will legally get a look at the sought-after document. He said the team will have the document by the end of Friday.
The final charter, due by the end of the year, is expected to outline targets for increased black participation in the white-dominated mining sector — the back bone of the economy.
One trader said the market was hoping for 15-20% black ownership targets this time round, against the original draft’s suggestions of 30% of existing South African mining assets and 51% or more on new projects.
Anglo BHP Billiton added 0,74% to R48,50.
Gold shares perked up 1,6% after two straight days of losses. Bullish investors took comfort in the fact that the spot gold price was clinging to levels of $320 an ounce and said prospects of war in Iraq would lend medium term support to the shares.
Gold Fields, the country’s biggest unhedged gold producer, notched up 1,16% to R131 and peer AngloGold added 2,1% to R562. Smaller unhedged rival Harmony Gold trotted two percent or 370 cents higher to R161,61.
Elsewhere platinum shares nudged higher buoyed by a firmer metal price. The platinum index added 0,8% led by gains in Anglo American Platinum, the world’s biggest platinum producer. Angloplat marched 1,1% to higher R355.
Firmer overseas markets underpinned the firm tone in the market. Banks reversed early morning losses helped by gains in their European counterparts.
Big bank Standard Bank inched up 0,3% to R29,75. Shares in Nedcor Investment Bank Holdings (NIB) surged 7,4% to 336 cents helped by news big bank Nedcor had revised upwards its offer to NIB minority shareholders.
Nedcor dipped 0,97% to R102,50. – Reuters