South African Stocks Edge Higher With Banks Helped by Rand Gains

(Bloomberg) -- South Africa’s main stock index advance 0.2% by 9:45 a.m. in Johannesburg as a stronger rand boosts shares in banks and gains for diversified miners counter weakness in gold and platinum producers.

Investors will be keeping an eye on developments around a national strike called Wednesday by unions representing workers across a range of industries, to highlight a litany of grievances, including job losses, an inadequate public transport system, corruption and state spending curbs.

NOTE: South African Unions Stop Work in Protest at Graft, Job Losses

• Rising iron ore prices lift diversified miners, countering weakness from precious metals producers, lifting the gauge for mining stocks by 0.2%
  • BHP Group Plc +0.7%, Anglo American Plc +0.7%, Glencore Plc +1.5
  • Sub-index of gold stocks retreats for a second day, down 0.4% as bullion prices dropped following President Donald Trump announcement that he had ended talks with Democrats on a new fiscal stimulus package until after the November presidential election, a move that roiled financial markets and boosted the dollar.
    • Harmony Gold Mining Co. -2.1%, Gold Fields Ltd. -1.1%, Pan African Resources Plc -1.1%, DRDGold Ltd. -0.1%
  • Sub index for platinum firms -0.1%
    • Northam Platinum Ltd. -1.8%, Sibanye Stillwater Ltd. -1.5%
• Index heavyweight Richemont rises 0.9%. British American Tobacco Plc +0.1%, Naspers Ltd. +0.2%, Anheuser-Busch Inbev SA +2.8%
• Index of bank stocks advances 0.8% as the rand strengthens
  • FirstRand Ltd. +0.9%, Standard Bank Group Ltd. +1.1%, Nedbank Group Ltd. +1.2%, Absa Group Ltd. +0.6%, Capitec Bank Holdings Ltd. +0.2%, Investec Plc +0.4%
• NOTE:Rand Gains as Central Bank Flags Stable Rates: Inside S. Africa
• Foreigners remained net sellers of South African stocks for a third day Tuesday, disposing of 1.06 billion rand worth of shares, according to index operator, JSE Ltd.

NEWS:

• South Africa Central Bank Shifts to ‘Wait and See’ on Rates
• S. Africa Ruling Party Leader Seeks Clarity on Arrest Rumors

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