South African Stocks Swing Lower as Weaker Rand Drags on Banks
(Bloomberg) -- South Africa’s main stock index erased gains of as much as 1% to be 0.8% lower as of 2:54 p.m. in Johannesburg as a weakening rand pulled banks lower, and as miners turned negative.
The local market tracked moves in Europe, where sentiment was strained by the threat of further virus lockdowns to the economy. Global equities are headed for the worst weekly decline since March. Thursday’s drop in the South African benchmark extends its losing streak to a fourth day, the longest in more than a month.
- Index of bank stocks falls for the fourth consecutive day, down 2.8% to the lowest in more than a week. The rand extended losses for a second day Thursday, falling 0.3% against the dollar after weakening by as much as 1.8% yesterday.
- FirstRand Ltd. -3.5%, Standard Bank Group Ltd. -3.5%, Absa Group Ltd. -4.5%, Nedbank Group Ltd. -5.6%, Capitec Bank Holdings Ltd. -1.8%, Investec Plc -3%
- Diversified miners lead sector gauge lower, with index down 0.9%
- BHP Group Plc -1.2%, Glencore -0.1%, Exxaro Resources Ltd. -2.8%
- Gold stocks retreat for a fifth day, with sector index down 1.7% to the lowest in four months, as a strengthening dollar drives bullion prices down.
- AngloGold Ashanti Ltd. -2.2%, Gold Fields Ltd. -2.3%, Harmony Gold Mining Co. -0.6%, DRDGold Ltd. -1.1%
- Platinum companies drop for the sixth consecutive session, with the sector index down 1.2% to a three-week low.
- Impala Platinum Holdings Ltd. -3.9%, Northam Platinum Ltd. -4.7%, Anglo American Platinum Ltd. -2.6%, Royal Bafokeng -2.8%
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