S.Africa shares up as investors buy oversold stocks
* Top-40 rises by more than 1 percent
* Spot gold buoys bullion miners
By Helen Nyambura-Mwaura
JOHANNESBURG, Oct 11 (Reuters) - South African shares rose for a second day on Thursday, as Richemont gained on an improved outlook for luxury goods and as investors piled into stocks they considered oversold following weeks of labour unrest.
A rising spot gold price after four straight days of declines boosted bullion producers such as Harmony Gold , which rose 2 percent to 70.99 rand.
Spot gold rose 0.4 percent on the day to $1,770.40 an ounce by 1430 GMT. The price had fallen by more than 2 percent over the prior four trading days, its longest stretch of declines since June this year.
"Commodity prices are up a bit and our market in the short term was a bit oversold for a couple of days so we are picking up again," said Rigardt Maartens, a portfolio manager at PSG Securities.
"This market is one day up one day down. It's very difficult to predict from day to day what's going be tomorrow."
The Top-40 rose by 1.07 percent to 32,352.10 and the All-Share climbed 0.97 percent to 36,498.44.
Richemont, the maker of luxury goods such as Cartier jewellery, surged 4.5 percent to 55.85 rand, buoyed by a better- than-expected interim report by British fashion house Burberry .
South African shares have hit several all-time highs this year despite doldrums in world markets, but a string of strikes that started with platinum miners and spread to other resource and transport companies has undermined the rise.
Foreign investors have consequently treaded cautiously around mining shares but should prices fall further, some may consider picking up bargains, said Mark Mobius, executive chairman of Templeton Emerging Markets Group.
"The current turmoil could be seen as an opportunity rather than a problem, but it really depends on the individual situation," he told Reuters in an interview on Thursday.
The six worst performing blue-chip stocks this year have been resources companies. Harmony has lost a quarter of its value this year, and is closely followed by Anglo American Platinum , which has shaved 24 percent.
Foreign investors have generally favoured the retail sector, pushing prices of top-end clothing and groceries seller Woolworths 60 percent higher this year.
Over 167 million shares were traded in Johannesburg on Thursday, with prices of 162 companies climbing, outpacing a drop by another 127.
(Additional reporting by Tosin Sulaiman; editing by David Dolan)
Keywords: SAFRICA STOCKS/