The Johannesburg Stock Exchange (“JSE”) located at 1 Exchange Square, 2 Gwen Lane, Sandton, Johannesburg, South Africa. Picture: Nhlanhla Phillips/African News Agency/ANA
The Johannesburg Stock Exchange (“JSE”) located at 1 Exchange Square, 2 Gwen Lane, Sandton, Johannesburg, South Africa. Picture: Nhlanhla Phillips/African News Agency/ANA

SA stocks miss out on stimulus rally as heavyweights fall

By Bloomberg Time of article published Oct 21, 2020

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JOHANNESBURG - South Africa’s main stock index halted a three-day rally, falling 0.2% as of 9:48 a.m. in Johannesburg, as weakness in index giants Richemont, Naspers Ltd., BHP Group Plc and Anglo American Plc overpowered the risk-on gains seen in many Asian markets earlier.

Sentiment toward riskier assets globally was buoyed after U.S. House Speaker Nancy Pelosi said Tuesday she’s hopeful for a stimulus agreement this week on a program that would be bigger, better and retroactive.

“Some renewed optimism made its way to markets, as U.S. lawmakers continued to negotiate the relief package, with emerging markets gaining on the hopes in the overnight session,” said Bianca Botes, Executive Director at Peregrine Treasury Solutions.

  • Naspers, with a 19% weighting on the index, declined 0.8% to provide biggest drag on the market. Its subsidiary, Prosus NV, dropped 1%
  • NOTE: Prosus Ventures Leads $15m Series Round in Mexican Bank Klar
  • Global luxury retailer Richemont retreated 1.7%, giving up some of Tuesday’s 2.9% advance
  • Index of bank stocks gains 0.5%, supported by stronger rand
  • Capitec Bank Holdings Ltd. +1.6%, Nedbank Group Ltd. +1.5%, Standard Bank Group Ltd. +0.8%
  • Food and drug sellers rise 2%, while general retailers advance 0.2%
  • Bid Corp Ltd. +4.2%, biggest jump since Aug. 27, after being upgraded by HSBC
  • NOTE: Bid Corp Raised to Buy at HSBC; PT 287 rand
  • NOTE: Bid Corp Initiated at Outperform by Avior on Food Delivery Edge
  • Pick n Pay Stores Ltd. +6.3%, Spar Group Ltd. +1.8%, Shoprite Holdings Ltd. +0.9%
  • Mr Price Group Ltd. +1%, Foschini Group Ltd +1%, Woolworths Holdings Ltd. +0.9%, Truworths International Ltd. +1.1%, Pepkor Holdings Ltd. +1%, Curro Holdings Ltd. +1.8%
  • Gold producers lifts gauge for mining stocks up 0.2%
  • Sub-Index of gold stocks up 1.4% after bullion prices gained amid bets that U.S. lawmakers may clinch a pre-election spending deal to bolster the U.S. economy, bruising the dollar.
  • Gold Fields Ltd. +1.4%, AngloGold Ashanti Ltd. +1.2%, Harmony Gold Mining Co. +1.5%, DRDGold Ltd. +3.2%, Pan African Resources Plc +0.2%
  • Among diversified miners: BHP -0.6%, Anglo American -0.5%, Glencore Plc -0.9%
  • Foreigners were net sellers of South African stocks for a fifth day Tuesday, disposing of R837 million worth of shares, according to exchange operator JSE Ltd.

BLOOMBERG

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