South African Stocks Set for Best Monthly Winning Streak Since 2014
(Bloomberg) -- South Africa’s main stock index dropped for a second day, slipping as much as 1.1% as banks declined, before paring its losses to 0.6% by 3:44 p.m. in Johannesburg.
Friday’s decline extended the weekly retreat to 0.8%, and trimmed the benchmark’s advance in April to 0.4%, on course for a sixth month of gains, the longest such winning streak since July 2014.
Index giant Naspers, with a 17% weighting on the benchmark, erased earlier gains to fall 1% after partly owned Chinese online giant Tencent Holdings Ltd. retreated in Hong Kong.
Industrial miners fell for a third day, slipping 1.1% as the iron ore rally paused.
- NOTE: Iron Ore Rally Pauses as China Steel Data Shows Cracks on Demand
- Anglo American Plc -1.9%, BHP Group Plc -0.3%, African Rainbow Minerals Ltd. -3%, Kumba Iron Ore Minerals Ltd. -1.6%
Precious metals producers fell 1% to the lowest intraday level since March 30, as gold extended its drop for a second day, while platinum miners disregarded price gains, including a record high for palladium.
- NOTE: Palladium Extends Record Rally Past $3,000 in Bet on Demand Boom
It’s “probably just a little week- and month-end profit taking across the board as some of the other resources stocks are also taking a breather,” said Stephen Meintjes, head of research at Momentum Securities in Johannesburg.
- Impala Platinum Holdings Ltd. -1.6% after its third-quarter production report.
- Sibanye Stillwater Ltd. -0.7%, Anglo America Platinum Ltd. -1.5%, Northam Platinum Ltd. -2.4%, Harmony Gold Mining Co. -1.2%, DRDGold Ltd. -0.8%, Pan African Resources Plc -0.3%
The rand weakened against the dollar Friday, pulling an index of bank stocks down 2.5%, the biggest decline since Jan. 22.
- NOTE: Stocks, Currencies Weaken Under Pandemic, Taper Risks: Inside EM
- FirstRand Ltd. dropped 4%, the most since April 20, after Remgro Ltd. offered 40 million of the bank’s shares. FirstRand was the single-biggest drag on the overall market.
- NOTE: FirstRand Offering by Holder Prices at 51 Rand/Share: Terms
- Standard Bank Group Ltd. -2%, Absa Group Ltd. -3.8%, Nedbank Group Ltd. -2.8%, Capitec Bank Holdings Ltd. -1.1%
General retailers declined 1.7%, while food and drug retailers slid 1.8%.
- Mr Price Group Ltd. -3.1%, Foschini Group Ltd. -1.8%, Truworths International Ltd. -2.4%, Woolworths International Ltd. -1%, Pepkor Holdings Ltd. -0.4%
- Bid Corp Ltd. -2.8%, Clicks Group Ltd, -1.4%, Shoprite Holdings Ltd. -1.2%, Spar Group Ltd. -1.5%, Pick n pay Stores Ltd. -1.4%
Index heavyweight and luxury goods retailer Richemont gained 0.8% to provide the biggest boost to the market,
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