Earnings estimates for South African stocks are at their highest ever, as analysts expect a major recovery in mining companies’ profits following a global rally in commodity prices in the past year. "For the first time in five years, there’s a good commodity cycle and the mining earnings were so depressed a year ago that they are coming off such a low base that they are shooting the lights out," Wayne McCurrie, head of portfolio management at Ashburton Investments, said by phone from Johannesburg. "The answer fundamentally is mining companies — there’s a massive turnaround in commodity share earnings. It’s got little to do with SA; iron ore has gone from $20 to $60, and that’s why they’re making money." Earnings estimates for companies listed on the JSE climbed to a record on May 9. The All Share index has gained 6.7% year-to-date. Bloomberg

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