South African stocks rose Thursday, gaining 0.6% as of 10:55 a.m. in Johannesburg and heading for a fresh all-time record close, as miners recovered amid optimism over a global recovery and as a stronger rand boosted banks.
Johannesburg stocks joined peers in posting gains as the technology sector led a wider Asian rally after weaker-than-expected consumer price inflation data Wednesday eased concerns about the US economy overheating, and helped to further stall the rising trend in bond yields.
The mood remains cautious toward high-priced growth stocks, which suffered most as yields rose, while cyclical shares continue to benefit from hopes for an economic rebound as the US stimulus package goes into effect.
Locally, investor focus will be on current account data, as well as gold and mining production numbers, while manufacturing figures are due in the afternoon. Traders are also awaiting an interest rate decision from the European Central Bank later Thursday.
Index giant Naspers extended gains for a third day, up 2.1% to provide the biggest boost to the index, as partly owned Chinese online behemoth Tencent advanced for a third day in Hong Kong.
Naspers subsidiary Prosus NV, which holds the company’s 31% stake in Tencent, was also up 2.1%, the third consecutive day of gains.
Anglo American halted a two-day slide, rising 1% as iron ore prices rebounded, leading the gauge for mining stocks higher for the first day in three, the sector index climbing 0.3%.
Glencore +0.7%, Exxaro +0.3%.
Gold stocks were higher on the back of gains in bullion prices, with the sector index climbing 0.9%.
AngloGold Ashanti +1.3%, Gold Fields +0.9%, Harmony Gold +0.6%, Pan African Resources +1.1%, DRDGold +0.7%.
MTN Group erased Wednesday’s losses, rising 2.3%, and leading the index for mobile telecommunications companies 1.1% higher.
Bank stocks extend gains for the sixth consecutive day, the longest winning streak in more than two years, as the rand strengthened.
FirstRand +0.7%, Absa Group +0.8%, Capitec Bank +0.3%, Nedbank +0.7%.
Standard Bank +0.7% after publishing full-year earnings.
Insurers gained 0.2%.
Sanlam +1% as prodit rose 24% in the year to December 2020.
Peers Momentum Metropolitan Holdings -0.1%, Discovery -0.1%, Old Mutual -1.1%.