South African Stocks Post Worst Week Since March Amid Tech Rout
South Africa’s main stock index slid 1.2% on Friday as local market giant Naspers Ltd. bore the brunt of a global rout in tech shares and gold miners reversed earlier gains as haven demand for bullion ebbed. The Johannesburg equities benchmark dropped 3.9% over the past five sessions for its worst week since March.
A rotation by investors out of the world’s high-flying tech companies saw China’s Tencent Holdings Ltd. lead Hong Kong equities lower for a second day in Hong Kong, pulling Naspers, which holds a 31% stake in Tencent through its Prosus NV unit, down 3.8% to the lowest since mid June. Prosus itself tumbled 4.3%. Luxury retailer Richemont retreated 2% to be the second-biggest decliner by index points.
A South African index of gold stocks surrendered gains of as much as 2.8% to fall 1.8%, a fourth day of declines. Bullion headed for its third weekly decline in four as renewed hopes for economic recovery and improved risk-on sentiment sapped demand for havens. Data Friday showed the U.S. labor-market rebound extended for a fourth month in August, adding pressure to gold.
- Harmony Gold Co. -4%, DRDGold Ltd. -3%, Pan African Resources Plc -1.7%, AngloGold Ashanti -1.5%, Gold Fields Ltd. -1.4%.
©2020 Bloomberg L.P.