South African stocks advanced on Monday with Discovery Ltd hitting a record high after the insurer announced a $246 million deal to increase its presence in Britain. South Africa's biggest health insurer jumped 4.3 percent to 104.50 rand, its biggest daily percentage gain in nearly nine months. Earlier in the session it hit a record high of 104.96 rand, after the company said it would buy the remaining 25 percent it doesn't already own in Pruhealth, which sells private medical insurance in Britain.
"PruHealth has been a good business for Discovery and they've got smart management so I expect the deal to be beneficial for them," said Greg Katzenellenbogen, a director at Sanlam Private Investments. The benchmark JSE Top-40 index rose 0.77 percent to 45,161 and the broader All-Share index gained 0.81 percent to 50,484. Platinum producer Lonmin rallied 7.2 percent to 34.99 rand, lifted by a pre-tax loss that was at the better end of expectations, a smaller rise in debt and its confirmation of a long-standing 2015 production target.
Paper maker Sappi surged 4.8 percent to 46 rand after it returned to quarterly profit thanks to cost cuts and higher selling prices. But mobile phone operator Vodacom skidded 4.2 percent to 127.50 rand after it lowered its growth outlook following a surprise fall in first-half profit. Trade was active with more than 205 million shares changing hands, well above last year's daily average of about 176 million shares. Advancers outnumbered decliners 196 to 98, while 60 issues were unchanged.
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