South African Stocks Rise as Anglo, Miners Ride Sentiment Boost

South Africa’s main stock index climbs 1.6% by 9:43 a.m. in Johannesburg as gains in diversified miners and a rally in Richemont counters weakness in index giant Naspers Ltd. It’s the market’s first trading session of the week following Monday’s holiday.

Sasol reverses earlier weakness to be 0.9% higher. Stock retreated as much as 3.1% after the company said it expects to swing to losses after write downs on U.S. chemical assets contributed to 112 billion rand ($6.3 billion) of charges and oil prices declined.

South African stocks joins peers in Asia and Europe in rising, as risk sentiment is boosted by a drop in coronavirus hospitalizations in some U.S. states, and by strong Chinese economic data.

  • Richemont rises for a fifth session, up 2.9% in the biggest gain since June 23. British American Tobacco Plc +3.6%, MTN Group Ltd +4.7%, and Mondi Plc +3%
  • Stronger rand lifts index for bank stocks up 2.6%
    • FirstRand Ltd. +1.5%, Standard Bank Group Ltd. +1.9%, Absa Group Ltd. +3%, Nedbank Group Ltd +4%, Capitec Bank Holdings Ltd. +2.6%, Investec Plc +3.6%
  • Diversified miners BHP Group Plc and Anglo American Plc climb as iron ore prices rise, pushing gauge for mining stocks up 0.9%
    • NOTE: Iron Ore Futures Gain as China’s Economic Recovery Fuels Demand
      • BHP +3.1%, Anglo American +3.6%, Glencore Plc +3.7%, African Rainbow Minerals Ltd. +1%
      • Exxaro +3.4%, even as company says headline earnings may decline as much as 34% in the six months to June 30
        • NOTE: Exxaro Sees 1H HEPS Decreasing Between 18% & 34% y/y
      • Weaker bullion prices push sub-index for gold producers to its lowest in more than two weeks
        • Gold Fields Ltd. -4.9%, AngloGold Ashanti Ltd. -3.7%, Harmony Gold Mining Co. -5.2%, DRDGold Ltd. -3.4%, Pan African Resources Plc -2.8%
  • Naspers, with a 18% weighing on the index, falls 2% to its lowest intraday level since June 17 to provide biggest drag on the market. Naspers subsidiary Prosus NV falls 2.5%
  • Foreigners were net sellers of South African stocks on Friday, disposing of 156 million rand worth of shares, according to bourse operator JSE Ltd.

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