South African Stocks Miss Out on Stimulus Rally as Heavyweights Fall
South African Stocks Miss Out on Stimulus Rally as Heavyweights Fall
(Bloomberg) -- South Africa’s main stock index rose 0.3% as of 4:32 p.m. in Johannesburg, advancing for a fourth day, with gold producers and banks among the leading gainers. The benchmark erased a decline of as much as 0.6% earlier in the session.
Gold advanced to a one-week high Wednesday as the dollar weakened amid optimism that U.S. lawmakers may clinch a pre-election spending deal to bolster the economy. The rand strengthened against the greenback, outperforming its emerging-market peers as it rallied 1.2% to be set for its biggest gain in three weeks and climbing to a one-month high.
A South African index of banking stocks jumped 2.9%, buoyed by the local currency. Absa Group Ltd. led the advance, rising 3.3%.
- Standard Bank Group Ltd. +3.1%, FirstRand Ltd. +3%, Nedbank Group Ltd. +2.7%, Capitec Bank Holdings Ltd. +2.3%
Johannesburg’s gold miners index rose 2.7%, with DRDGold Ltd. up 5.2%, Harmony Gold Mining Co. up 4.5%, AngloGold Ashanti Ltd. up 2.4% and Gold Fields Ltd. up 2.2%.
“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.
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