South African Stocks Hit New Record as Major Miners Regain Poise
(Bloomberg) -- South African stocks climbed 0.9% as of 12:42 p.m. in Johannesburg, hitting a fresh all-time high as heavyweight miners recovered from their weakness earlier in the session and as banks advanced.
The benchmark FTSE/JSE Africa All Share Index had fallen as much as 0.4%, but bounced back as a gauge of mining stocks reversed declines to climb 0.4%. Fuels and chemical producer Sasol Ltd. remained the biggest drag on the market, sliding 2.7% as oil prices fell before an OPEC+ meeting on supplies.
Most global markets traded risk-off Tuesday after China’s top banking regulator said he’s “very worried” about risks emerging from bubbles in financial markets. Locally, Old Mutual Investment Group struck a positive tone, saying domestically focused companies should benefit from growth of as much as 5% as the economy rebounds.
Johannesburg stocks are trading at a discount to their emerging-market peers “because no-one is paying attention to the resilience of South African companies,” OMIG Senior Portfolio Manager Siboniso Nxumalo said during a web conference.
Comeback Year for S. Africa May Drive Stock Recovery, OMIG Says
Among miners, BHP Group gained 0.9%, while fellow diversified giant Anglo American Plc advanced 0.4%.
Gold stocks dropped for a third day, down 1.6% as bullion prices fell.
Gold Slumps to Eight-Month Low on Waning Demand, Rising Dollar
- AngloGold Ashanti Ltd. -1.3%, Gold Fields Ltd. -0.5%
Index giant Naspers Ltd. advanced for a second day, rising 1.6% to provide the biggest boost to the index after partly owned tech company Tencent Holdings Ltd. edged higher in Hong Kong.
An index of bank stocks gained for a second day, rising 1.3% as a climbing FirstRand Ltd. countered a weaker rand.
- FirstRand +1.4% following rating upgrade Monday.
- Standard Bank Group Ltd. +1.1%, Nedbank Group Ltd. +0.9%, Absa Group Ltd. +2.4%, Capitec +1.2%
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