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South Africa Stocks Edge Higher on Bank Gains, Richemont Upgrade

South Africa Stocks Edge Higher on Bank Gains, Richemont Upgrade

South Africa’s main stock benchmark erased earlier losses to edge 0.1% higher as of 10:22 a.m. in Johannesburg, bolstered by gains among banks, and after market heavyweight Richemont was boosted by a Morgan Stanley upgrade.

Friday’s advance was tempered by weakness in mining stocks that reflected mixed equities trading in Asia, as investors weighed fading prospects for a stimulus deal in Washington against disappointing U.S. jobs data. The South African gauge is less than 0.1% lower for since Monday, poised for the first weekly drop in three.

Tech investor and market giant Naspers Ltd. was the biggest contributor to the morning’s gains, climbing 1.7% and tracking a similar rise in partly owned Chinese internet behemoth Tencent Holdings Ltd. in Hong Kong. Naspers unit Prosus NV, which holds the 31% Tencent stake, rose 1%.

Global luxury retailer Richemont advances for a third day, rising 0.3% after Morgan Stanley analysts upgraded the stocks to overweight on optimism over demand in China.

  • NOTE: Richemont to Benefit From Growing China Demand for Jewels: MS
  • Sasol Ltd. advanced for the fourth consecutive day, up 3.7% to the highest intraday level in more than two weeks, as oil prices headed for a weekly gain amid a vaccine-driven rally
  • Index of bank stocks rose 1.2% as renewed dollar weakness buoyed the rand.
    • NOTE: Rand Set for 6th Weekly Gain Before Auction: Inside South Africa
    • Capitec Bank Holdings Ltd. +3.8%
      • NOTE: Capitec Capital Adequacy Ratio for Tier 1 at 30.7% in 3Q
    • FirstRand Ltd. +0.9%, Standard Bank Group Ltd. +0.6%, Absa Group Ltd. +0.6%, Nedbank Group Ltd. +1%, Investec Plc +0.8%
  • The gauge of mining stocks retreated 0.6% amid widespread weakness among iron ore, gold and platinum producers
    • Anglo American Plc -1.4% to cause the biggest drag on the benchmark index.
    • AngloGold Ashanti Ltd. -1.6%, Gold Fields Ltd. -1.5%, Impala Platinum Holdings Ltd. -0.7%, Harmony Gold Mining Co. -2.7%, Northam Platinum Ltd. -1%, Glencore Plc -1.3%
  • MTN Group Ltd. fell 2.5%, dragging the index for mobile telecommunications down for the fourth consecutive day, down 1.5%
  • NOTE: MTN, Airtel Ordered to Suspend Nigerian SIM Card Sales
    • MTN peers Vodacom Group Ltd. +0.1%, Blue Label Telecoms Ltd. +0.8%
  • Foreigners were net buyers of South African stocks for a fifth consecutive day Thursday, purchasing 472 million rand worth of shares, according to exchange operator JSE Ltd. That’s the longest stretch of net foreign inflows since May.

©2020 Bloomberg L.P.