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South African Stocks at Three-Month Low as Risk Sentiment Sours

South Africa’s Stocks Post Longest Losing Streak in 16 Months

South Africa’s main stock benchmark drops as much as 2.9% to the lowest June 17 as rising virus cases hammer risk sentiment, dragging global markets lower.

“Investors are becoming increasingly worried about the momentum in the economic recovery given the resurgent numbers of global Covid-19 cases and lack of progress on a new U.S. stimulus package,” Hussein Sayed, chief market strategist at FXTM, said in an emailed note.

Monday’s weakness extends the FTSE/JSE Africa All Shares Index’s slide to a fifth consecutive day, the longest losing streak since May 2019. Some 121 of the 142 index members were trading lower at 1 p.m. local time.

  • Market behemoth Naspers Ltd. drops for a fourth session, down 1.9%, as partly owned Tencent Holdings Ltd. declines in Hong Kong. Naspers holds a 31% stake in Tencent.
  • Gauge for mining stocks drops 1.6%.
    • BHP -2.3%, Anglo American -3.1%, Sibanye Stillwater Ltd. -4.3%, Impala Platinum Holdings Ltd. -4.9%, Anglo American Platinum Ltd. -4.7%, Northam Platinum Ltd. -3%, Glencore Plc -4%.
    • Sub-index for gold miners extends losing streak to a fourth day, down 2.9% to the lowest since July 7, as bullion prices retreat ahead of comments from Federal Reserve Chair Jerome Powell and insight from the mining industry at a conference this week.
      • NOTE: PRECIOUS: Gold Declines as Powell’s Testimony and Forum in Focus
        • Gold Fields Ltd. -4%, AngloGold Ashanti Ltd. -1.7%, Harmony Gold Mining Co. Ltd. -2.8%, Pan African Resources Plc -3.9%, DRDGold Ltd. -3.2%.
  • Index for bank stocks drops for a third day, down 3%, as the rand erases earlier gains and drops 1.8%.
    • Standard Bank Group Ltd. -3.6%, FirstRand Ltd. -2.1%, Absa Group Ltd. -3.8%, Capitec Bank Holdings Ltd. -2.7%, Nedbank Group Ltd. -4.7%, Investec Plc -3.6%.
  • Weak currency drags index for food and drug sellers down 3.4%, while general retailers fall 3.5%.
    • Bid Corp Ltd. -4.8%, Shoprite Holdings Ltd. -2.2%, Clicks Group Ltd. -2.6%, Spar Group Ltd. -3.4%, Pick n Pay Stores Ltd. -2.9%, Dis-Chem Pharmacies Ltd. -3.3%.
    • Woolworths Holdings Ltd. -6.3%, Mr Price Group Ltd. -3.4%, Truworths International Ltd. -6.5%, Foschini Group Ltd. -1.8%, Pepkor Holdings Ltd. -2.7%, Massmart Holdings Ltd. -4.1%.
  • Foreigners were net sellers of South African stocks, disposing 815 million rand worth of shares Friday, according to index operator, JSE Ltd.

©2020 Bloomberg L.P.