South African stocks surge to near record close

JOHANNESBURG (Reuters) - South African stocks surged 1.7 percent on Thursday, putting the benchmark Top-40 index within shouting distance of a record close, as investors continued to bet resource companies like Anglo American had fallen too far this year.

Petrochemicals firm Sasol gained almost 4 percent after it said it expects full-year earnings to increase by up to 30 percent, helped by higher production volumes.

"We are still seeing a good recovery in the very depressed metals markets," said Ferdi Heyneke, a portfolio manager at Afrifocus Securities.

"Because of all the negative sentiment related to labour issues those share prices have really been under tremendous pressure and the market is now realising that they have been overly discounted."

The benchmark Top-40 index rose 1.71 percent to 37,473.94, its third-highest close on record. The broader All-Share index gained 1.49 percent to 41,909.39.

Impala Platinum, the world's second-largest producer of platinum, was the top percentage gainer on the blue-chip index, advancing 4.6 percent to 101.54 rand while resources group Anglo added 4.1 percent to 222.16 rand.

Shares of gold miner AngloGold Ashanti rose 1 percent to 129.69 rand after South Africa's largest gold producer said its Tropicana project in Australia has been commissioned ahead of schedule and will begin producing gold in the third quarter.

Resources stocks have been hammered by soaring costs and labour unrest, sending their shares into a tail-spin this year.

AngloGold Ashanti is the worst performer on the Top-40 this year, down more than 50 percent. Impala Platinum has given up 40 percent this year, while Anglo American has lost 15 percent of its value.

More than 150 million shares changed hands, according to preliminary bourse data. Advancers outnumbered decliners at 185 to 107, with 58 stocks unchanged.

Source: http://news.yahoo.com/south-african-stocks-surge-near-record-close-164042925.html

green bay packers Joe Webb Fiesta Bowl Jeanie Buss NFL playoff schedule 2013 Bronson Pelletier andy reid