Talks on ending strike boost platinum sector

SOUTH African stocks ended in positive territory on Thursday ahead of the four-day Easter weekend and as talks to end a platinum strike injected fresh optimism into the sector.

Local equities markets were closed for Good Friday.

Prospects for platinum producers Anglo American Platinum and Impala brightened with news that striking mining union leaders and company executives were in talks to end the strike that is entering its 13th week.

The world’s three biggest platinum producers, including Lonmin, have reportedly lost R13.5-billion in revenue in the country’s most damaging work stoppage. “There is light at the end of the tunnel. The market was positioning itself for some good news,” Wilmar Buys, a FFO Securities portfolio manager, said of the sector.

The Top 40 index rose 0.47% to 43 446.52, and the All Share index was 0.46% higher at 48 362.22.

Amplats rose 2.8% to R505.21, and Implats was up 2.5% at R122.01. Lonmin was up 1.3%.

Trade in the coming week was likely to be light, depending on whether US companies would be unveiling better performances, said Buys.

Global equity markets rose slightly on Thursday, boosted by data indicating strength in the US economy and by upbeat results from major US companies.

The number of Americans filing initial claims for unemployment benefits rose less than expected in the latest week. Factory activity in the US mid-Atlantic region expanded this month at a faster clip than expected.

Quarterly results from Morgan Stanley, Goldman Sachs and General Electric improved risk sentiment, although results from tech heavyweights Google and IBM were disappointing.

World stocks, as measured by the MSCI all-country index, rose 0.28%. Thursday’s US economic data also supported riskier assets.

“The trend in the jobless claims is a positive for the economy, and certainly keeps the recovery on track for the US,” said Greg Michalowski, chief currency analyst at FXDD.

The Dow Jones industrial average slid 0.04% to 16 418.39, the S&P 500 edged up 0.07% to 1 863.58 and the Nasdaq Composite 0.23% to 4 095.467.

A rally in cyclical stocks following soothing US company results helped the FTSEurofirst 300 of top European shares to gain 0.4% to 1 327.35 points in afternoon trade.

However, investors remained wary of placing strong bets before a four-day Easter weekend in Europe and as some European companies reported earnings were hit by currency effects.

The FTSEurofirst 300 index fell to a low of 1 317.62 earlier in the session before recovering.

Spot gold was unchanged at $1 301.90/oz. Silver was flat at $19.61/oz. Platinum gained 0.2% to $1 434.75/oz. Palladium was unchanged at $798/oz. —