South Africa’s Stocks Extend Winning Streak to Longest in 15 Months

(Bloomberg) -- South Africa’s main stock index fell 0.4% in Johannesburg Tuesday, halting a six-day rally as market giant Richemont dropped for the first time in four sessions and as banks retreated. The benchmark earlier rose as much as 0.7%.

Richemont retreated 1.2%, with the luxury retailer causing the biggest drag on the overall market. The stock had climbed 10% in three days amid speculation that it could become a takeover for target for LVMH.

An index of banking stocks slid 1.7%, two days before a meeting of the central bank’s monetary policy committee. The market is split on the timing of a potential South African rate cut. Of the 17 economists in a Bloomberg survey, nine predict a 25 basis-point drop this week and the rest see the rate unchanged.

• Investec Ltd. -4.1%, Standard Bank Group Ltd. -2.5%, Nedbank Group Ltd. -1.9%, FirstRand Ltd. -1.7%

  Read more here about the outlook for South African bank stocks

The Foschini Group Ltd. sank 4.8%, the most in two months, after the retailer issued a profit warning. Other general retailers declined, with Steinhoff International down -5%, Massmart Holdings Ltd. -4.8%, Truworths International Ltd. -3.3%.

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