/ 17 October 2002

Platinum stocks lead JSE bourse higher at open

South African stocks opened firmer on Thursday led by mining shares as the price of platinum reached its highest level since the end of May 2001 and a rally on European markets.

The all-share index climbed 0,39% or 37 points to 9,603.9 points, although dealers said volumes were thin on lingering investor nervousness over the resilience of global markets.

”Investors are still unsure, but US futures are looking strong, and platinum is looking good,” said one trader.

Gold stocks limited the bourse’s gains, as the price of the precious metal edged back. Gold Fields, South Africa’s second largest gold producer, slid 5,8% or 660 cents to R108.

But Anglo American Platinum, the world’s largest platinum producer, lurched 3,34% or R12,50 higher, and peer Impala Platinum piled on three percent or R17 to R577.

The price of the white metal briefly hit a 17-month high in Europe on Thursday after tight short-term lending rates prompted short-covering in Japan.

At 0637 GMT, platinum was at $598,00/603,00 a troy ounce, off an earlier $601,00/606,00.

Angloplat’s gains helped propel parent Anglo American 2,1% or 291 cents higher to R138,02 rand. It was also helped after bank group ABN Amro upgrading the diversified miner to ”add” from ”reduce”, and raised its price target by about five percent to 986 pence per share.

Luxury-goods firm Richemont also propped up the bourse’s gains, adding 1,74% or 30 cents to R17,50, bolstered by a strong showing in European blue chips on Thursday. – Sapa