South Africa Stocks Gain as Life Healthcare Surges on Biogen Win
(Bloomberg) -- South Africa’s main equities gauge advanced 0.1% by 9:45 a.m. in Johannesburg as Life Healthcare Group Holdings soared after the U.S. Food and Drugs Administration approved Biogen’s Alzheimer’s drug.
The FDA approval makes Biogen the first new Alzheimer’s drug in almost 20 years. Life Healthcare rose as much as 18% to the highest level since April 2019.
Investors in South Africa are awaiting the release of South Africa’s first-quarter GDP, which will probably show Africa’s most industrialized economy expanded by an annualized 3.2% in the three months through March from the previous quarter, according to the median estimate of economists in a Bloomberg survey.
Peers in a number of Asian markets edged back Tuesday as investors await more clues on whether the recovery from the pandemic will stoke price pressures and imperil loose monetary policy.
- Index giant Naspers Ltd., with a 15% weighting on the index, rises 0.6% to provide the biggest boost to the index, as partly owned online and gaming firm Tencent Holdings Ltd. advances in Hong Kong.
- Naspers holds a 29% stake in Tencent through subsidiary Prosus NV, which is up 0.5%
- Index for bank stocks rise 0.8%, ahead of the quartely GDP print
- FirstRand Ltd. +1.4%, Standard Bank Group Ltd. +1.3%, Absa Group Ltd. +1%, Capitec Bank Holdings Ltd. +0.6%, Invested Plc +0.5%, Nedbank Group Ltd. +0.1%
Life Healthcare peers in the index for health care companies surged 4.9%, to the highest since March 2019
- Aspen Pharmacare Holdings Ltd. +1.1%, Netcare Ltd. +2.8%, Mediclinic International Plc +1.2%
- British American Tobacco Plc +2.2% after company increases revenue forecast as much as 5% in trading statement.
- NOTE: BAT Raises Revenue Growth Forecast Constant FX to More Than 5%
- Industrial miners drop for a second day, down 0.2% to provide the biggest drag to the index
- Anglo American Plc -0.7%, BHP Group Plc -0.1%, African Rainbow Minerals Ltd. -1.5%, Glencore Plc -0.6%, Kumba Iron Ore Ltd. -0.5%, Thungela Resources Ltd. -2.3%
- Foreigners were net sellers of South African equities for a second consecutive day Monday, disposing 232 million rand worth of shares, according to exchange operator JSE Ltd.
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