South Africa stocks edge to record close, Kumba hit

JOHANNESBURG (Reuters) - South African stocks booked their highest close on record on Friday, edging up 0.3 percent as positive economic data from China helped lift shares of Richemont and other firms sensitive to Asian demand.

Gains were limited as shares of Kumba Iron Ore tumbled 7.6 percent to 438.06 rand after it reported a 16 percent drop in quarterly production.

Sentiment was also buoyed by firmness in global equity markets, as the U.S. government's last minute debt deal increased expectations the U.S. Federal Reserve will need to keep its stimulus programme in place for longer.

"Kumba did come off very sharply today, on its (production) report, but at the same time we're seeing some nice, strong moves on the market," said Ferdi Heyneke, a portfolio manager at Afrifocus Securities.

"The U.S. shutdown worries have been put to the side, but it's still very mixed."

The benchmark Top-40 index finished up 0.27 percent at 39,894.47, its highest close on record. It earlier topped 40,000 for the first time in its 18-year history.

The broader All-Share index gained 0.39 percent to 44,689.29, also a record finish.

Data showed China's economy grew 7.8 percent in the third quarter, its fastest pace this year.

That helped lift Johannesburg shares of Richemont - the Swiss-based luxury goods maker founded and run by South Africa's Rupert family - by 1.6 percent to 100.48 rand, as investors bet on continued Chinese demand for Cartier watches and Mont Blanc pens.

Elsewhere, insurer Sanlam rose 5.5 percent to 50.42 rand, as investors began to cycle back into financial firms, some of which have been relative underperformers this year.

Shares of Transaction Capital rose 4 percent to 7.61 rand after the investment holding company said it was in deal talks. It did not give further details.

Volume was average, with 151 million shares changing hands, according to preliminary bourse data. A total of 172 shares advanced, 113 declined and 56 were unchanged.

Source: http://news.yahoo.com/south-africa-stocks-edge-record-close-kumba-hit-160311927--finance.html
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