Stocks rise as investors opt for riskier assets
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