South African stocks climbed more than 1 percent in thin trade on Monday to close at a three-week high as investors snapped up bullion producers such as AngloGold Ashanti that have benefited from a recent rally in the spot price. Although spot gold was down on the day, a Friday rally that saw it touch its highest since December 22 and its biggest one-day jump in 2-1/2 weeks filtered through to Monday's session after local markets had been closed for the Christmas holidays.
"Friday's sharp move was a typical non liquidity move, so naturally enough it gives back a bit today," Saxo Bank's head of commodity research Ole Hansen said. "We are less than 1 percent away from where we finished a year ago, and I do not think we will sway much away from current prices." Johannesburg's Top-40 index ended 1.7 percent higher at 44,477. The index has risen more than 7 percent this year, adding to a 19 percent gain in 2013.
The wider All-share index added 1.6 percent to 50,254, the first time its been above the 50,000 mark in nearly a month.
AngloGold was the highest gainer on the blue chip index having climbed more than 5 percent. Smaller producers Harmony Gold and Gold Fields added 7 percent and 5 percent respectively.
Trade was thin, with just 63 million shares changing hands with gainers outpacing decliners 215 to 102.
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