Main Stocks Index Of South Africa Rose To A Record

13 Aug 2013

As Gold-Mining companies rallied on higher prices, the main stocks index of South Africa rose to a record. In Johannesburg, the 166-member FTSE/JALSH(JSE Africa All-Share Index) advanced 1.4% to 42,333.43. As Chinese consumption of the precious metal rose and after trading broke a key technical level, spot gold prices climbed a fourth day.

With the measure rising 10%, the highest since May 30, all 6 members in the FTSE/JSE Africa Gold Mining Index gained. The rally was led by Africa’s third-largest producer of the metal, HAR (Harmony Gold Mining Co.), which jumped 14% to 37.30 rand. Led by Lonmin Plc’s 6.6% advance to 52.40 rand, the gauge of South African platinum producers added 5.6%.

China is the world’s second-largest buyer of Gold and the largest buyer of South African raw materials. According to China’s Gold Association, the country’s consumption rose 54% to 706.4 metric tons in the six months through June from a year earlier. Looking at the the rise in the stocks and the Gold prices, investing in South Africa may be a good idea. According to a senior vice president at bullion refiner MKS (Switzerland) SA, Afshin Nabavi, the price of the metal rose as much as 1.5% to $1,333.94 an ounce, rallying after it broke above $1,320 amid technical buying.

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