Banks were also prominent among gainers, with FirstRand up 3.28% and Standard Bank Group rising 2.52%. An index for the sector advanced for a second day, climbing 3.08%.
Weakness in tech investor Naspers and its unit Prosus NV curbed gains in the broader benchmark after reports that the Trump administration may bar investments in China’s two most valuable companies, Alibaba Group and Tencent. Naspers, which holds a 31% stake in Tencent through Prosus, fell 2.81% as its subsidiary retreated 3.29%.
“The JSE is following the U.S. playbook, looking through the virus second wave to stimulus hopes with Democrat control of the Senate,” said Tom Gale from Standard Bank’s equities trading desk. “A steeper US yield curve is helping boost banks and commodities and that’s feeding through here. Tech is out of favour on rising anti-trust risk and U.S.-China tension, and that helps fuel rotation from last year’s winners to losers.”
South African stocks’ charge to all-time highs has triggered a signal that the rally may be overdone. The 14-day relative strength indicator on the benchmark index has climbed beyond 70, a level regarded by some analysts as warning that the market may have risen too rapidly and be poised for a retreat.
© 2021 Bloomberg L.P.