South African Stocks Hit a 20-Month High
South Africa’s main stock index advanced for a fourth consecutive day to the highest intraday level since April 2019, with Anglo American Plc jumping to a 12-year high and strength in the rand lifting banks.
The FTSE/JSE Africa All Shares Index was up 0.6% as of 10:20 a.m. in Johannesburg. Anglo American climbed 0.7% to the highest since July 2008 after an update from Kumba Iron Ore Ltd., which gained 1.4%.
NOTE: Kumba Sees FY 2020 Output at Lower End of Guidance
The risk-on sentiment was evident in early trade, with 112 of the 141 index members advancing, and only 17 lower. Friday’s strength helped propel the FTSE/JSE Africa All Share index to a second week of gains, rising 2.7% since Monday, and extend the annual increase to 4%.
Meanwhile, global equities remain around record highs as investors bet that positive vaccine developments can help sustain an economic recovery next year. Uncertainty remains about a U.S. stimulus package, where a bipartisan proposal endorsed by Democratic leaders as a basis for negotiations is luring increased interest from Republicans, lifting the chances for a deal by year-end.
- Gauge for mining stocks climbs for a fourth day, up 0.6%
- BHP Group Plc +0.7%, Anglo American Platinum Ltd. +2%, Exxaro Resources Ltd. +2.3%, Impala Platinum Holdings Ltd. +0.9%, Sibanye Stillwater Ltd. +0.5%, African Rainbow Minerals +1%, Glencore Plc +0.4%
- Index for bank stocks rises for a fourth day, the longest winning streak since Oct. 2. Banks up 1.6% as the rand strengthens
- FirstRand Ltd. +2.2%, Standard Bank Group Ltd. +2.1%, Absa Group Ltd. +1.9%, Nedbank Group Ltd. +1.7%, Capitec Bank Holdings Ltd. +0.6%, Investec Plc +1.5%
- Insurers +2.4%
- Sanlam Ltd. +2.8%, Discovery Ltd. +2.7%, Old Mutual Ltd. +2%, Momentum Metropolitan Holdings +1.2%, Liberty Holdings Ltd. +2%
- Foreigners were net sellers of South African stocks Thursday, disposing 285 million rand worth of shares, according to exchange operator JSE Ltd.
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