South African Stocks Edge Lower in Risk-Off Mood Before GDP Data

South Africa’s main stock benchmark index halted a five-day rally, dropping 0.1% by 9:45 a.m. in Johannesburg and slipping from the highest close since April 2019, as a downturn in miners and weakness among banks pulls the market lower.

The gauge joined peers in Asia in declining Tuesday, as swelling coronavirus infections across the U.S. weighed on risk assets overnight.

Investors will be awaiting South Africa’s third-quarter gross domestic product numbers, with the country estimated to have exited its technical recession in the three months through September.

NOTE: South Africa GDP Is Down From 2019 Even as Recession Ends: Chart

  • Index of bank stocks retreated for a second day, down 0.7% as the rand weakened
    • NOTE: Rand Dips Before GDP as EM Peers Edge Lower: Inside South Africa
      • Standard Bank Group Ltd. -0.5%, Investec Plc -1.3%, FirstRand Ltd. -0.4%, Capitec Bank Holdings Ltd. -1.1%, Absa Group Ltd. -1%
  • Insurers -0.8%
    • Sanlam Ltd. -0.8%, Old Mutual Ltd. -0.8%, Discovery Ltd. -0.9%, Liberty Holdings Ltd. -1.3%, Momentum Metropolitan Holdings -0.4%
  • Gauge of mining stocks dropped 0.2%, as weakness in diversified miners drowned out gains from gold and platinum companies
    • BHP Group fells 0.5% to cause the biggest drag on the overall market. Exxaro Resources Ltd. -0.3%, Glencore Plc -0.3%
    • Gauge of gold stocks extended gains for a second day, up 0.9% as bullion prices climb amid swelling coronavirus infections across the U.S.
      • NOTE: Gold at Two-Week High Amid Rising Virus Cases, Stimulus Outlook
      • Gold Fields Ltd. +1.5%, Harmony Gold Mining Co. +1.4%, DRDGold Ltd. +3.3%, Pan African Resources Plc +2.5%
    • Index for platinum stocks +0.3%
      • Sibanye Stillwater Ltd. +0.6%, Impala Platinum Holdings Ltd. +0.6%, Anglo American platinum ltd. +0.4%
  • Naspers Ltd. gained 0.2% to provide biggest boost to the index, as partly owned Tencent Holdings ltd. advanced in Hong Kong.
  • Foreigners were net buyers of South African stocks for a second day Monday, purchasing 212 million rand worth of shares, according to exchange operator JSE Ltd.

©2020 Bloomberg L.P.

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