South African stock prices ticked higher for a second straight session on Tuesday as news the economy had avoided sinking into a recession sent a sigh of relief through the markets. Bullion producers got a lift as the yellow metal's price recovered from a two-month low reached last week as a rally in the US dollar paused.
Gold Fields rose 2.1 percent to 46.25 rand while Africa's top producer AngloGold Ashanti added 1.25 percent. Africa's most advanced economy grew 0.6 percent in the second quarter, compared to a 0.6 percent contraction in the previous quarter, but lower than the 0.9 percent that a Reuters poll of 26 analysts had predicted. "Although the GDP data disappointed, there is a bit of cheer that at least we are not in recessionary territory," said Petri Redelinghuys, a senior trader at Inkunzi Investments. The benchmark Top-40 index added 0.6 percent to 46,478 and the broader All-share index rose by a similar margin to 51,729. Strong data out of the United States had also given local stocks a leg up and would continue to support the market, Redelinghuys said.
Comments
Comments are closed.