SA stocks drop as US stimulus, lockdowns hit sentiment

The FTSE/JSE Africa All Share Index fell 1.4% at 9:59 a.m. in Johannesburg, the biggest decline since September 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, Anglo American, BHP Group and Richemont, making up 46% of market capitalisation, 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 retreated in Hong Kong. Naspers subsidiary Prosus NV, which holds the 31% stake in Tencent, fell 2.9%
• Rand-hedge Richemont dropped for a third day, down 1.7%
• Sasol extended declines to a fifth consecutive session, down 4.6% to the lowest since early June
• Mondi fell 2.1% after a third-quarter trading update
• The gauge for mining stocks was down 0.7%:
  • Anglo American  fell 1.3%, BHP by 0.2%, Impala Platinum 1.3%, Sibanye Stillwater 1%, AngloGold Ashanti 0.7%, Gold Fields 0.6%, Northam Platinum 0.6%, Harmony Gold 0.2%
• The index for bank stocks retreated 1.2% as the rand weakened for a second day:
  • FirstRand fell 1.5%, Capitec Bank by 1.6%, Nedbank Group 1.3%, Absa Group 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 digitise its systems to fend off fintech firms encroaching on its client base.

Read: Standard Bank is bulking up

• Foreigners were net sellers of South African stocks on Wednesday, disposing of R3.45 billion worth of shares, according to exchange operator JSE.