Stocks rise as in­vestors opt for riskier as­sets

Weekend Argus (Saturday Edition) - - BUSINESS -

SOUTH African stocks edged up yes­ter­day, their fourth con­sec­u­tive day of gains, with riskier as­sets still in de­mand fol­low­ing a broadly neu­tral shift in US mone­tary pol­icy.

“The mar­ket is still go­ing for risky as­sets. You see that as riskier as­sets such as Im­pala Plat­inum are re­ally run­ning to­day,” said Abri du Plessis, the chief in­vest­ment of­fi­cer at Gryphon As­set in Cape Town.

Implats, as the world’s sec­ond-largest plat­inum pro­ducer is known, was the big­gest gainer on the Top 40 in­dex, adding 6.1 per­cent to R117.79.

Among top per­form­ers, doc­u­ments ware­hous­ing com­pany Metrofile climbed 5.45 per­cent to R4.64 in a tech­ni­cal re­bound af­ter charts sug­gested it had strayed into over­sold ter­ri­tory in the pre­vi­ous ses­sion.

Over­all, mar­ket sen­ti­ment has re­mained up­beat af­ter the US Fed­eral Re­serve su­gar- coated Wed­nes­day’s mod­est cut in stim­u­lus with a sig­nal that in­ter­est rates were likely to stay low for longer.

This is de­spite the many draw­backs to the South African eq­ui­ties story, from high val­u­a­tions when com­pared to emerg­ing mar­ket peers to slow rates of eco­nomic growth.

The Top 40 in­dex added 0.57 per­cent to 39 833.69. The broader all share in­dex rose 0.56 per­cent to 44 574.25. – Reuters

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