South Africa’s main stock index advanced 0.2% by 9:45 a.m. in Johannesburg as a stronger rand boosts shares in banks and gains for diversified miners counter weakness in gold and platinum producers.
Investors will be keeping an eye on developments around a national strike called Wednesday by unions representing workers across a range of industries, to highlight a litany of grievances, including job losses, an inadequate public transport system, corruption and state spending curbs.
Rising iron ore prices lift diversified miners, countering weakness from precious metals producers, lifting the gauge for mining stocks by 0.2%. BHP +0.7%, Anglo American +0.7%, Glencore +1.5.
Sub-index of gold stocks retreats for a second day, down 0.4% as bullion prices dropped following President Donald Trump announcement that he had ended talks with Democrats on a new fiscal stimulus package until after the November presidential election, a move that roiled financial markets and boosted the dollar.
Harmony Gold -2.1%, Gold Fields -1.1%, Pan African Resources -1.1%, DRDGold -0.1%Sub index for platinum firms -0.1%Northam Platinum -1.8%, Sibanye Stillwater -1.5%.
Index heavyweight Richemont rises 0.9%. British American Tobacco +0.1%, Naspers +0.2%, Anheuser-Busch Inbev SA +2.8%.
Index of bank stocks advances 0.8% as the rand strengthens, FirstRand +0.9%, Standard Bank +1.1%, Nedbank +1.2%, Absa +0.6%, Capitec +0.2%, Investec Plc +0.4%.
Foreigners remained net sellers of South African stocks for a third day Tuesday, disposing of R1.06 billion worth of shares, according to index operator, JSE Ltd.