JOHANNESBURG: South African stocks extended gains for the third day, rising 0.7 percent on Tuesday as strong US data continued to stoke demand for commodities firms such as Kumba Iron Ore and Exxaro Resources .
Shares of MTN Group rose for the first time in four sessions, having been hammered after Turkish rival Turkcell filed a suit in a US court charging the mobile operator of using bribery and other corrupt practices to win a licence in Iran.
"We are still seeing some buying coming in through resources that have been sold down recently," said Ferdi Heynenke, portfolio manager at Afrifocus Securities, adding that there was also a chase for higher dividend yielding shares.
Better-than-expected US manufacturing data on Monday boosted investor sentiment globally.
South Africa's blue-chip Top-40 index rose 0.67 percent to 30,214.74. The broader All-share index was up 0.64 percent to 34,192.19.
Kumba rose 3.24 percent to 542 rand while diversified miner Exxaro was up 2.5 percent at 205 rand.
MTN closed 2.33 higher at 132 rand.
Advancers outnumbered decliners by 192 to 128. A total of 63 stocks were unchanged.
Decliners included South Africa's main gold miners. Gold Fields fell the most, shedding 1.48 percent to 106 rand.
"Gold shares and direct miners like the platinums still seems to be struggling although they are picking up. It looks like they could be a bit of interest in those shares," Heynenke said.
Trade was relatively slow with 208 million shares changing hands, according to preliminary bourse data, down from the daily average of 256 million sold last year.
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