You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App

NEW SENS search and JSE share prices

More about the app

Banks buoy SA stocks as budget hits ‘all the right notes’

The benchmark gauge posted its strongest advance for a month.
Image: Moneyweb

South Africa’s main stock index extended its gains, spurred by Finance Minister Tito Mboweni’s budget address, climbing as much as 1.6% as banks rallied on a speech that Deutsche Bank AG described as “hitting all the right notes.”

The benchmark gauge posted its strongest advance for a month, with Standard Bank climbing 2.7% and fellow lender FirstRand rising 1.7% to be among the strongest drivers of the gains. So-called South Africa Inc. stocks focused on the domestic economy such as retailers also climbed as the rand strengthened.

“This should be positive for the rand and markets — better-than-consensus deficit trajectory, thanks to an increase in tax collections of some R99 billion in FY20/21,” Johannesburg-based Deutsche Bank economist Danelee Masia wrote in a note. “The budget has been a welcomed surprise, and a positive deviation from previous years’ negative surprises.”

FTSE/JSE Africa All-Share Index was 1.2% higher as of 3:36 p.m. in Johannesburg, with 101 out of the 141 members of the gauge higher.

An index of banking stocks was 2.5% higher, after rising as much as 3.3%. Capitec rose 1.8%, Absa gained 4.7%, Nedbank rose 4.4% and Investec Plc 3.1%

Insurers climbed 3.1%, also boosted by the stronger local currency.

  • Discovery +5.3%, Sanlam +2%, Old Mutual +2.6%, Momentum Metropolitan Holdings +2.5%, Liberty Holdings +3.3%.

General retailers gained 3.2%, while food and drug retailers were up 1.4%.

  • Woolworths +4.4%, Foschini +3.8%, Truworths International +4.1%, Mr Price +3.4%, Pepkor +2.8%.
  • Shoprite +3.5%, Clicks +1.1%, Spar +2.6%, Dis-Chem +2.3%, Pick n Pay +2.9%.

The gauge of mining stocks climbed 1.7%, as diversified miners joined gold and platinum producers in rising.

  • Anglo American+2.8%, BHP +1.4%, Exxaro Resources +3%, Glencore +2.4%, African Rainbow Minerals +1.2%.

Platinum miners resumed their rally, climbing 1% as prices increased.

  • Sibanye Stillwater +1.7%, Impala Platinum +0.6%, Northam Platinum +2.2%, Royal Bafokeng Platinum +4.1%.

A gauge of gold miners climbed 1.1%.

  • AngloGold Ashanti +2.3%, Harmony Gold Mining +0.1%, Pan African Resources +0.3%.
© 2021 Bloomberg

COMMENTS   1

You must be signed in to comment.

SIGN IN SIGN UP

And all the good numbers/news did not last for long.

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

INSIDER SUBSCRIPTIONS APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING PORTFOLIO TOOL CPD HUB

Follow us:

Search Articles: Advanced Search
Click a Company: