South African Stocks Fall, Paring Best November Gains Since 2001

South Africa’s main stock benchmark index dropped for a second day, down 1.1% by 9:42 a.m. in Johannesburg, the biggest intraday decline in more than a week, as market giant Naspers Ltd. joined diversified miners and banks in pulling the main gauge lower.

Risk-off sentiment was evident in early trade, with 91 of the 141 listed companies declining, while 37 traded higher.

Monday’s weakness trimmed the index’s advance in November to 11%, the first monthly gain since July. The benchmark remained on track for its best month since April, and the best November since 2001.

Global equities are up 13% in November as positive vaccine news helped drive expectations that a global economic recovery can pick up in 2021, helping flows into companies with earnings more closely tied to a rebound in growth.

  • Naspers, with a 19% weighting in the benchmark, retreated for a second day, down 1% to the lowest in a week, causing the biggest drag on the market, as partly owned Tencent Holdings Ltd. slid in Hong Kong.
    • Naspers subsidiary Prosus NV, which holds the company’s 31% stake in Tencent, retreated 1%.
  • Index of bank stocks fell for a second day, down 2.1% to the lowest intraday level in a week, as the rand weakened.
    • Standard Bank Group Ltd. fell 2.3% after publishing trading update.
      • NOTE: Standard Bank Sees FY HEPS More Than 20% Lower Y/y
    • FirstRand Ltd. -2.2%, Absa Group Ltd. -3.3%, Nedbank Group Ltd. -3.3%, Capitec Bank Holdings Ltd. 1.4%, Investec Plc -2.4%
  • Diversified miners led the broader sector’s gauge lower for a second day, with the index down 0.5%.
    • BHP Group Plc -1.1%, Anglo American Plc -0.6%, Impala Platinum Holding Ltd. -1.1%, Northam Platinum Ltd. -1.2%, African Rainbow Minerals Ltd. -1.9%, Anglo American Platinum Ltd. -0.4%, Exxaro Resources Ltd. -1.1%, Glencore Plc -0.9%, Royal Bafokeng Platinum Ltd. -0.8%
    • Index of gold companies rose 1.3%.
      • AngloGold Ashanti Ltd. +1.8%, Gold Fields Ltd. +0.5%, Harmony Gold Mining Co. +1.6%, Gold Fields Ltd. +0.5%, DRDGold Ltd. +1.9%
  • Insurers -2.8%
    • Sanlam Ltd. -3.3%, Old Mutual Ltd. -2.6%, Discovery Ltd. -2.7%, Momentum Metropolitan Holdings -2.7%, Liberty Holdings Ltd. -2.7%
  • Foreigners turned net buyers of South African stocks for the first time in 10 days Friday, purchasing 140 million rand worth of shares, according to exchange operator JSE Ltd.

©2020 Bloomberg L.P.

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