Stocks rise as gold miners climb before Powell

Main stock index extends gains for a second day, rising 0.7%.
Image: Moneyweb

South Africa’s main stock index extends gains for a second day, rising 0.7% by 9:50 a.m. in Johannesburg, as index heavyweight Naspers and its subsidiary Prosus NV advance, and as gold stocks lift miners.

Sasol gets little benefit from higher oil prices, slides 3.6% to be biggest drag on the market after the company says it shut its $13 billion Lake Charles Chemicals Project due to Hurricane Laura making landfall on the US Gulf Coast.

  • The global rally that pushed equities to a record stalled Thursday ahead of a highly anticipated speech from Federal Reserve Chair Jerome Powell. Investors will also be watching US GDP and jobless claims due later.

  • Naspers, with a 20% weighting on the index, rises 1.8% to a three-week high, providing biggest boost to the benchmark, as partly owned tech giant Tencent advances in Hong Kong. Naspers subsidiary Prosus rises 2% to the highest since the company listed in September 2019.
  • Gauge of mining stocks advances for a second day, up 0.3%.
    • AngloGold Ashanti +1.1%, Anglo American +0.2%, Harmony Gold Mining +1.6%, Impala Platinum Holdings +0.8%, DRDGold Ltd. +3.1%, Anglo American Platinum Ltd. +0.8%.
    • Gold Fields +0.9% as company see gold miners widening their investment appeal as near-record bullion prices boost profits and dividends.
  • Food and drug retailers rise 1%.
    • Bid Corp +2.8%, Clicks +0.6%, Spar +0.5%, Shoprite +0.2%.
  • Aspen Pharmacare climbs 5.4% to a seven-week high as company says revenue may rise as much as 10% in the year to June 30.
  • Blue Label +9% to the highest since July 23, as company swings to profit in the year to May 31.
  • Foreigners turn net sellers of South African stocks Wednesday, disposing of R340 million worth of shares, according to bourse operator JSE Ltd.
© 2020 Bloomberg

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