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Bourse rises to record before Anglo joins global benchmark

Bourse rises to record before Anglo joins global benchmark < News < Bet On Markets

Johannesburg — The benchmark FTSE/JSE Africa all share index rose to a record yesterday, led by Anglo American before its inclusion in the Morgan Stanley Capital International (MSCI) developed market indices.

The all share jumped 0.6 percent to 12 513.26 points, with 89 stocks rising, 43 declining and 29 unchanged. The all share has climbed 26 percent from a low on July 19 as growth boosts demand for stocks in mining companies, which account for more than 40 percent of the index.

Anglo gained 1.21 percent to R141.70 before it joins the indices at the end of trading today. Some $175 billion in funds are benchmarked to the MSCI Europe, according to Citigroup estimates.

«Anglo is going into the MSCI for developed markets and the tracker funds are buying that one,» said Michael Dix at Citigroup Global Markets.

Standard Bank added 1 percent to R60.35 and FirstRand jumped 1.9 percent to R13.20 as the rand climbed to a five-year high against the dollar, reviving speculation about a possible interest rate cut next month.

«The market is pricing in a rate cut of about 50 basis points,» Dix said, adding: «If we do not get a rate cut, I think we are going to see a bit of a correction.»

Tiger Brands advanced 3.5 percent to R98.34.

African Life Assurance advanced 6.7 percent to R16 after saying first-half profit rose 84 percent to R165 million.

Corpcapital surged 9.4 percent to 70c. It reported a full-year profit of R217 million from a R197 million loss the previous year.

Labat Africa lost 3.9 percent to 25c. It reported a loss of R9.97 million in the first half, from a profit of R1.17 million a year earlier.

Naspers climbed 2.6 percent to R64.20. It said first-half profit surged to R1.06 billion, from R20 million the year before, after it made accounting rule adjustments and advertising revenue rose.

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