South Africa’s all-share index hit a lifetime high in early trade on Tuesday, as commodity firms such as Impala Platinum ticked higher, tracking gains in global equities after upbeat economic growth data in China.
By 7.37am GMT, the all-share index, the broadest measure of South African stock market performance, was up 0.65% at 33 422.29, above its previous record of 33 334.55 set 11 months ago.
“Last year was a nothing year so a lot money has been sitting on the sidelines. It’s January, a lot of money is looking to come into the market even with worries about Europe,” Nick Kunze, a head of dealing at BJM Securities.
“The reporting season at home and in the United States would determine if there’s a real momentum behind these gains.”
The all-share index is up nearly 5% so far this year, after a flat 2011.
The benchmark Top-40 index was up 0.74% at 29 857.08, still well below its record high of 31 393.l0 set last year.
Shares of commodity companies rose, as the slightly better-than-expected Chinese economic data convinced investors that resources will continue to be helped by demand for the world’s number two economy.
Diversified miner Anglo American rose 1.4% to R324.98 and platinum producer Impala Platinum advanced 1.3% to R170.20.
China’s gross domestic product grew at an annual rate of 8.9% in the fourth quarter, its weakest in two and a half years and slowing from 9.1% in the previous quarter, but it beat expectations for an 8.7% rise. — Reuters