South Africa Stocks Rise as Vaccine Hopes Spur Appetite for Risk

(Bloomberg) -- South Africa’s main stock index gains 0.4% by 9:49 a.m. in Johannesburg, advancing for the sixth consecutive day, the longest streak of gains since January, as signs of progress toward a virus vaccine lifts risk appetite, driving markets higher.

More than 50% of the listed South African companies climb, with the four biggest stocks -- Naspers Ltd., Anglo American Plc, BHP Group Plc and Richemont, which make up 46% of local market capitalization -- leading the advance.

Investor focus will be on central banks this week, with the U.S. Federal Reserve expected to maintain its dovish stance on policy as investors look for signs the global economy is recovering from the pandemic, while the South African Reserve Bank has analysts and traders divided about prospects for another rate cut. Seven of 12 economists in a Bloomberg survey predict the central bank will cut the repo rate by 25 basis points to a record low 3.25% on Thursday. The other five see rates on hold, while money markets are pricing about a one-in-three probability of a 25-point cut.

NOTE: Worse-Than-Expected GDP Likely To Prompt SARB Rate Cut

• Naspers advances for a fourth session, rising 1.5% to its highest in more than a week as a resumption of the tech rally lifts partly owned Tencent Holdings Ltd., in Hong Kong. Naspers subsidiary Prosus NV advances 1.7%.
• Luxury retailer Richemont rises 1.4%
• Index for bank stocks gains 0.7% as the rand advances for a second day
  • NOTE: Worst Year for South African Bank Stocks Offers Glimmers of Hope
  • Standard Bank Group Ltd. +1.1%, FirstRand Ltd. +0.3%, Absa Group Ltd. +0.6%, Capitec Bank Holdings Ltd. +0.5%, Nedbank Group Ltd. +0.9%, Investec Plc +1.5%
• Diversified miners BHP and Anglo American lift mining index, which gains 0.8%
  • Anglo American +2.4%, BHP +1.5%, Gold Fields Ltd. +1.4%, Glencore Plc +1.4%, DRDGold Ltd. +2.6%, African Rainbow Minerals +0.1%
• Bidvest Group Ltd +6.1% after company publishes full year earnings
• Foreigners remained net buyers of South African stocks for a third day Friday, purchasing 466 million rand worth of shares, according to bourse operator JSE Ltd.

NEWS:

• Absent Patients Sound Alarm Bells for South African Doctor
• South African Finances ‘Dangerously Overstretched,’ Mboweni Says

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