Global stocks gain as Germany okays new rescue fund

STOCKS rose yesterday despite spreading labour unrest at mines, which thumped shares of Anglo American Platinum (Amplats), with the wider market pulled up on renewed hopes the euro zone can contain its debt crisis.

The Top40 index of blue chips closed up 0.86 percent at 31 533.63 points. The broader all share index advanced 0.82 percent at 35 736.41 points.

Shares of platinum producer Amplats were hammered, falling 4.05 percent to R417.50, after it was caught up in the labour strife that has shut smaller rival Lonmin for five weeks amid violence that has killed 45 people so far.

Amplats suspended some of its operations to protect employees from protesters who demanded its mines be shut.

Still, investors found solace after Germany’s top court gave its go-ahead to the euro zone’s new rescue fund, which lifted shares worldwide while the market also anticipated more liquidity from the US Federal Reserve.

All eyes are also on the crucial meeting of the Fed though local gains may be capped by investor nervousness around the mining violence. the meeting concludes today.

Gainers on the JSE included investment bank Investec, which rose 3.5 percent to R52.65, and BHP Billiton, which gained 2.85 percent to close at R257.70. Platinum producer Aquaradded 5.88 percent to close at R5.40 as the spot price of the precious metal hit a fivemonth high on the labour troubles in South Africa.

Gold Fields share prices extended losses to close 2.29 percent lower at R102.70.

About 15 000 workers at its KDC West mine near Johannesburg are on an illegal strike that started on Sunday night.