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%.