SA stocks erase gains as tight US vote hits rand
South Africa’s main stock benchmark wiped out gains of as much as 0.8% Wednesday to be 0.6% lower as of 9:54 a.m. in Johannesburg as investor concerns about a contested US election weakened sentiment toward riskier assets.
An index of South African banks slid 3.6% as the rand weakened as much as 2.3% against the dollar, with the close outcome of the American vote buffeting emerging-market currencies. President Donald Trump declared he had won re-election against Joe Biden and said he would ask the Supreme Court to intervene, even as several battleground states continue to count votes.
A gauge of local mining stocks dropped for the first day in three, falling 0.7%, led by declines in diversified miners.
BHP Group Plc -1.2%, Anglo American Plc -1.2%, Gold Fields -0.9%, Impala Platinum, -0.6%, Harmony Gold Mining -1.9%, Northam Platinum -1.3%.
Weakness in the rand pulls bank stocks down, halting a two-day rally.
FirstRand -3.7%, Standard Bank -3%, Capitec Bank -2.8%, Absa Group -3.2%, Nedbank -4.3%.
Naspers Ltd, with a 20% weighting on the index, rose 2.9%, providing the biggest boost to the market as it rebounded from Tuesday’s 4.2% slump; subsidiary Prosus NV gained 2.8%.
Rand hedge and index heavyweight Richemont extended gains for a third day, up 1.4%.
Foreigners were net sellers of South African stocks Tuesday, disposing R695 million of local equities, according to exchange operator JSE Ltd.
Source: moneyweb.co.za