South African Stocks Drop as U.S. Stimulus, Lockdowns Hit Sentiment
South Africa’s main stock index slid on Thursday as risk off sentiment dragged global equities lower.
The FTSE/JSE Africa All Share Index fell 1.4% at 9:59 a.m. in Johannesburg, the biggest decline since Sept. 25.
Asian and European stock markets declined as chances faded of a stimulus deal in Washington before next month’s presidential election. A resurgent virus outbreak weighed on sentiment, with France announcing stricter measures, Germany warning of economic risks and London set to tighten restrictions.
Giants Naspers Ltd., Anglo American Plc, BHP Group Plc and Richemont, making up 46% of market capitalization, led the index lower, with 99 of the 141 listed companies falling in early trading, while 30 gained.
- Naspers halted a four-day rally, falling 2.9% to provide the biggest drag to the index, as partly owned tech giant Tencent Holdings Ltd. retreated in Hong Kong.
- NOTE: Tencent Said Planning to Lift Stake in Universal Music Group
- NOTE: Tencent-Backed Miniso Raises $608 Million in U.S. IPO
- Naspers subsidiary Prosus NV, which holds the 31% stake in Tencent, fell 2.9%
- NOTE: Mondi Third-Quarter Underlying Ebitda EU306 Mln
- NOTE: Mondi’s 3Q Broadly In-Line, Shows Resilience, Jefferies Says
- Anglo American -1.3%, BHP -0.2%, Impala Platinum Holdings Ltd. -1.3%, Sibanye Stillwater Ltd. -1%, AngloGold Ashanti Ltd. -0.7%, Gold Fields Ltd. -0.6%, Northam Platinum Ltd. -0.6%, Harmony Gold Mining Co. -0.2%
- FirstRand Ltd. -1.5%, Capitec Bank Holdings Ltd. -1.6%, Nedbank Group Ltd. -1.3%, Absa Group Ltd. -0.7%, Investec Plc -1.3%
- Standard Bank fell 0.8% after the lender said it plans to scale-up some of its operations on the continent and further digitize its systems to fend off fintech firms encroaching on its client base.
- NOTE: Africa’s Biggest Bank Is Bulking Up to Fend Off Fintech Rivals
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