South African Stocks Rise as Record Bullion Price Lifts Miners

South Africa’s main stock index gains 0.3% as of 9:58 a.m. in Johannesburg, as a weaker dollar boosts the prices of precious metals, with record bullion prices lifting gold producers to a fresh all time record, and higher platinum prices bolstering local producers.

South African Stocks Rise as Record Bullion Price Lifts Miners

Risk sentiment has been strengthened by optimism over the the upcoming U.S. Federal Reserve meeting, which has drowned fears over simmering Sino-American tensions, as well as concerns of second waves of the coronavirus pandemic, with outbreaks from China to Spain serving as reminders of the difficulty in permanently stamping out the coronavirus.

Investors will be looking to the Fed’s meeting for clues on what comes next for policy.

  • Gauge for mining firms jumps 1.9% to provide biggest boost to the index, as gold producers join platinum companies to drive index higher
    • AngloGold Ashanti Ltd. +4.1% to an all-time high after company says it sees first-half headline earnings rising on the back of higher gold price, weaker local currencies, higher foreign exchange gains. Anglo American Platinum Ltd. rises 2.7% to a record as it publishes first-half earnings
      • NOTE: Anglo Platinum Keeps Dividend Despite Coronavirus Disruptions
    • Anglo American Plc +1.1%, Gold Fields Ltd. +4.4%, Impala Platinum Ltd. +4%, Sibanye Stillwater Ltd. +4.6%, Harmony Gold Mining Co Ltd. +4.3%, Northam Platinum Ltd. +4%, Exxaro Resources Ltd. +2.2%
  • Rand-hedge Cie. Financiere Richemont SA falls 0.6% to provide biggest drag to the index as the currency appreciates.
  • Naspers Ltd., with a 19% weighting on the index, falls 0.3% to the lowest in more than a week, as partly owned internet giant Tencent Holdings Ltd. retreats in Hong Kong
  • Index for bank stocks shakes off stronger rand, falls 1.1% to the lowest in more than two weeks
    • Standard Bank Group Ltd. -0.8%, Absa Grou Ltd. -0.5%, FirstRand Ltd. -0.5%, Nedbank Group Ltd. -1.7%, Investec Plc -2.7%, Capitec Bank Holdings Ltd. -1.2%
  • Foreigners remained net buyers of South African stocks for a third day Friday, disposing of 341m rand worth of shares, according to exchange operator JSE Ltd.

©2020 Bloomberg L.P.

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