South Africa’s main stock index climbs 1.6% by 9:43 a.m. in Johannesburg as gains in diversified miners and a rally in Richemont counters weakness in index giant Naspers. It’s the market’s first trading session of the week following Monday’s holiday.
Sasol reverses earlier weakness to be 0.9% higher. Stock retreated as much as 3.1% after the company said it expects to swing to losses after write downs on US chemical assets contributed to R112 billion of charges and oil prices declined.
South African stocks joins peers in Asia and Europe in rising, as risk sentiment is boosted by a drop in coronavirus hospitalisations in some US states, and by strong Chinese economic data.
- Richemont rises for a fifth session, up 2.9% in the biggest gain since June 23. British American Tobacco +3.6%, MTN Group +4.7%, and Mondi +3%
- Stronger rand lifts index for bank stocks up 2.6%
- FirstRand +1.5%, Standard Bank Group +1.9%, Absa Group +3%, Nedbank Group +4%, Capitec Bank Holdings +2.6%, Investec +3.6%
- Diversified miners BHP Group and Anglo American climb as iron ore prices rise, pushing gauge for mining stocks up 0.9%
- BHP +3.1%, Anglo American +3.6%, Glencore +3.7%, African Rainbow Minerals +1%
- Exxaro +3.4%, even as company says headline earnings may decline as much as 34% in the six months to June 30
- Weaker bullion prices push sub-index for gold producers to its lowest in more than two weeks
- Gold Fields -4.9%, AngloGold Ashanti -3.7%, Harmony Gold -5.2%, DRDGold -3.4%, Pan African Resources -2.8%
- Naspers, with a 18% weighing on the index, falls 2% to its lowest intraday level since June 17 to provide biggest drag on the market. Naspers subsidiary Prosus falls 2.5%
- Foreigners were net sellers of South African stocks on Friday, disposing of R156 million worth of shares, according to bourse operator JSE.
© 2020 Bloomberg