S. African Stocks Rally With Help From China Data, Weaker Dollar

(Bloomberg) --

South Africa’s main stock index halts a two-day slump, rising 1.4% by 9:54 a.m. in Johannesburg, as dollar weakness lifts the rand, driving locally focused stocks like insurers, financials and retailers

Miners extend gains for a third day, rising as sustained demand from Chinese mills lifted iron ore prices, and as greenback weakness drives bullion back toward $2,000 an ounce. Chinese manufacturing data indicated that
exports are underpinning a recovery.

Johannesburg’s benchmark index ended August 0.4% lower, snapping a winning run of four month-on-month gains.

• BHP Group Plc +1.8% on Tuesday, Anglo American Plc +2.2%, AngloGold Ashanti Ltd. +4.3%, Gold Fields Ltd. +3.6%, Sibanye Stillwater Ltd. +3.4%, Impala Platinum Holdings Ltd. +2.9%, Anglo American Platinum Ltd. +2.8%, Harmony Gold Mining Co. Ltd. +2.9%
• Africa’s biggest listed company, Naspers Ltd. halts a two-day slide, rising 2.1%, to provide the biggest boost to the index. Gains come as tech giant Tencent Holdings Ltd, in which Naspers hasa 31% stake, rises in Hong Kong.
  • Naspers subsidiary, Prosus NV, which holds the Tencent stake, gains 1.9%.
• Insurers rise 0.5%
  • Sanlam Ltd. +0.9%, Discovery Ltd. +0.7%
  • Old Mutual Ltd. halts five-day slide, gains 0.3%, after posting a 67% decline in profit in the first half to June, and scrapped the company scraps its dividend citing high levels of uncertainty caused by the coronavirus pandemic.
    • NOTE: Old Mutual Scraps Dividend as Profit at African Insurer Plunges
• General financials rise 0.5% as the rand advances
  • NOTE: Rand Rebounds as Ramaphosa Wins Party Backing: Inside S. Africa
  • Rand Merchant Investment Holdings +1.8%, Reinet Investments SCA +0.6%, Ninety One Plc +0.5%, Quilter Plc +0.4%
• Food and drug retailers +0.6%
  • Bid Corp Ltd. +0.7%, Pick n Pay Stores Ltd. +3.2%, Shoprite Holdings Ltd. +0.5%, Spar Group Ltd. +0.4%, Clicks Group Ltd. +0.2%
• MTN Group Ltd. retreats for a sixth day, the longest losing streak since February 28
  • NOTE: MTN Names Perumal Acting Group CFO; Molefe CFO of MTN S. Africa
• Foreigners were net sellers of South African stocks for a second day Monday, disposing of 5.66 billion rand worth of shares, according to exchange operator JSE Ltd. That’s the largest outflow since May 29.

NEWS:

• South Africa’s Eskom Resumes Blackouts After Plant Breakdowns

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