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South Africa’s main stock benchmark dropped for a third day, down 0.4% by 9:55 a.m. in Johannesburg, dragged lower by miners and banks in a risk-off session.
The market followed Asian peers in tumbling Friday, as surging coronavirus cases fanned concern that tougher curbs may hamper the economic recovery without further stimulus. Sentiment toward riskier assets worsened after theworld’s top central bankers warned that the prospect of a vaccine isn’t enough to put an end to the economic challenges created by the pandemic.
Friday’s weakness trimmed the benchmark’s weekly gain to 0.8%, still set to rise for a second week in a row.
Johannesburg’s index of mining stocks retreated 0.6%, as platinum and gold companies dropped and diversified miners fell.
- Anglo American Plc -0.4%, Sibanye Stillwater Ltd. -1.4%, Impala Platinum Holdings Ltd. -1.2%, Gold Fields Ltd. -0.9%, BHP Group Plc -0.2%, Northam Platinum Ltd. -1.7%, Anglo American Platinum Ltd. -0.4%, Exxaro Resources Ltd. -0.5%
An index of bank stocks dropped for a second day, down 1.8% as the rand traded lower against the dollar.
- FirstRand Ltd. -1.4%, Standard Bank Group Ltd. -1.4%, Absa Group Ltd. -2.7%, Nedbank Group Ltd. -2.9%, Capitec Bank Holdings Ltd. -0.3%, Investec Plc -1.5%
- Insurers fall 2.8%
- Sanlam Ltd. -2.2%, Old Mutual Ltd. -3.1%, Discovery Ltd. -2.3%, Momentum Metropolitan Holdings -2.4%, Liberty Holdings Ltd. -1.9%
Index giant Naspers Ltd. gained for a second day, up 0.9% to provide biggest boost to the market, as partly owned Chinese internet behemoth Tencent Holdings Ltd. rose in Hong Kong after releasing its earnings Thursday.
- NOTE:Tencent Climbs After Reassurances on China’s Internet Clampdown
- Naspers subsidiary Prosus NV, which holds Naspers’ 31% stake in Tencent, gained 1.3%
Foreigners turned net sellers of South African stocks for the first time in six days Thursday, disposing of 390 million rand worth of shares, according to exchange operator JSE Ltd.
- South Africa’sUnemployment Rate Swings Back to 17-Year High
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