South Africa’s main stock index rises 0.3% by 9:36 a.m. in Johannesburg, extending gains for a seventh consecutive day, the longest winning streak since June 2019, as miners advance following positive economic data from China.
The benchnmark index is also bolstered by a rally in gold stocks, with bullion prices climbing before the two-day US Federal Open Market Committee meeting starting Tuesday. Investors are seeking clues on the outlook for immediate policy tweaks to fight the pandemic’s impact as well as the bank’s new stance on rekindling inflation.
South Africa joins Asian peers in advancing Tuesday, as a pick up in China’s recovery spurs risk-on sentiment. China registered the first growth in retail sales since Covid-19 hit early in the year and as industrial output beat analyst estimates, underscoring a rebound in economic activity.
Diversified miners join gold and platinum stocks to drive gauge for mining setor up 2.1%.
BHP +1.8%, Anglo American +1%, Sibanye Stillwater +2.5%, Impala Platinum +1.4%, Anglo American Platinum 1.5%, Northam Platinum +1.4%, Glencore +1.7%.
Index for gold stocks up 3% to a one-month high.
Harmony Gold rises 4.6% after the company’s losses narrowed in the full year to June thanks to an increase in revenue on the back of higher gold prices and lower costs.
Gold Fields +4.2%, AngloGold Ashanti +2.1%, Pan African Resources +1.9%, DRDGold +1.5%.
Healthcare index up 1.6%.
Life Healthcare +2.6%, Netcare +0.9%.
Foreigners turned net sellers of South African stocks, disposing of R1.3 billion worth of shares Monday, according to bourse operator JSE Ltd.