South African Stocks Rise as Gold Miners Climb Before Powell

(Bloomberg) --

South Africa’s main stock index extends gains for a second day, rising 0.7% by 9:50 a.m. in Johannesburg, as index heavyweight Naspers Ltd. and its subsidiary Prosus NV advance, and as gold stocks lift miners.

Sasol Ltd. gets little benefit from higher oil prices, slides 3.6% to be biggest drag on the market after the company says it shut its $13 billion Lake Charles Chemicals Project due to Hurricane Laura making landfall on the U.S. Gulf Coast.

• NOTE: Sasol Shuts Troubled Lake Charles Plant as Hurricane Approaches

• The global rally that pushed equities to a record stalled Thursday ahead of a highly anticipated speech from Federal Reserve Chair Jerome Powell. Investors will also be watching U.S. GDP and jobless claims due later.

• Naspers, with a 20% weighting on the index, rises 1.8% to a three-week high, providing biggest boost to the benchmark, as partly owned tech giant Tencent Holdings Ltd. advances in Hong Kong. Naspers subsidiary Prosus rises 2% to the highest since the company listed in September 2019.
• Gauge of mining stocks advances for a second day, up 0.3%
  • AngloGold Ashanti Ltd. +1.1%, Anglo American Plc +0.2%, Harmony Gold Mining Co. +1.6%, Impala Platinum Holdings Ltd. +0.8%, DRDGold Ltd. +3.1%, Anglo American Platinum Ltd. +0.8%
  • Gold Fields Ltd. +0.9% as company see gold miners widening their investment appeal as near-record bullion prices boost profits and dividends.
    • NOTE: Gold Fields Expects Rewards From Buffett’s Turn to Gold Miners

• Food and drug retailers rise 1%

  • Bid Corp Ltd. +2.8%, Clicks Group Ltd. +0.6%, Spar Group Ltd. +0.5%, Shoprite Holdings Ltd. +0.2%
• Aspen Pharmacare Holdings Ltd. climbs 5.4% to a seven-week high as company says revenue may rise as much as 10% in the year to June 30.
  • NOTE: Aspen Sees FY Reported Revenue Growth 8% to 10% Higher y/y
• Blue Label Telecoms Ltd. +9% to the highest since July 23, as company swings to profit in the year to May 31.
  • NOTE: Blue Label Full Year Net Income 226.8 Mln Rand
• Foreigners turn net sellers of South African stocks Wednesday, disposing of 340 million rand worth of shares, according to bourse operator JSE Ltd.

NEWS:

• Further South Africa Rate Cuts Now Hinge On Forecast for Economy
• South Africa May Be First in Region to Produce Covid-19 Vaccine

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