Mining shares add most points to benchmark index

STOCKS ended higher yesterday, breaking a three-day losing run, with heavily weighted mining shares adding the most points to the benchmark index as metal prices recovered.

Equities have been under pressure in recent days on concerns the US could raise interest rates as early as June.

The benchmark Top40 index gained 1.04 percent to 46 303.16 points and the broader all share index added 0.94 percent to 52 240.06.

“On balance, the overall technical structure on the Top40 retains a positive bias, but the near-term outlook still signifies a much increased likelihood of additional residual selling pressure,” brokerage house Imara SP Reid said.

Tracking a rally in copper prices after better-than-expected lending data from China, BHP Billiton gained 1.75 percent to R264.30 and rival Anglo American picked up 1.38 percent to R199.21.

Banks also gained with FirstRand up 4.06 percent to R55.05 and Nedbank 2.26 percent to R246.50.

On the downside, retailer Woolworths fell 1.71 percent to close at R86.10.

Fitch Ratings affirmed South Africa-based Santam’s National Insurer Financial Strength (IFS) rating at “AA+” and national long-term rating at “AA”. Fitch had simultaneously affirmed Santam’s subordinated debt at “A+”.

The ratings reflected Santam’s “core” status within the Sanlam group, under the insurance group rating method-

up ology, Fitch said. The ratings also reflected its stand-alone credit profile, which was consistent with Sanlam Life Insurance’s IFS rating of “AA+”.

Santam is the country’s largest general insurer, with a strong domestic franchise. At end-2014 Santam increased its gross written premiums by 10 percent to R22.7 billion.

Fitch believed that Santam remained adequately capitalised based on the agency’s own risk-adjusted assessment and the regulatory statutory requirement.

FTSE/JSE Africa Index Series