SA stocks resume climb

South Africa’s main stock index gained 0.5% as of 9:49 a.m. in Johannesburg, heading for a fresh record close, as mining stocks benefited from optimism over U.S. stimulus spending that could spur an economic rebound and boost demand for metals.

The FTSE/JSE Africa All Share Index resumed its advance after falling Tuesday for the first day in seven, pausing a rally that saw the gauge notch up four all-time closing highs. South African stocks have rebounded almost 70% from the low plumbed last March during the global selloff spurred by the pandemic.

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Anglo American Plc, the diversified mining giant, gained 0.5% and peer BHP Group rose 0.3% to be among the leading contributors to the overall market strength. An index of mining stocks was 0.6% higher, snapping three days of losses.

Fuel and chemicals producer Sasol rallied a further 3.7% to a seven-month high, with oil poised for the longest winning streak in almost two years. Sasol has surged 31% this month, making it Johannesburg’s top-performing stock of 2021 so far.

Naspers, the global tech investor that carries the biggest weighting in the benchmark index, advanced 1.4% to provide the biggest boost to the gauge as partly owned Chinese online giant Tencent rose in Hong Kong, helping MSCI Inc.’s index of Asia-Pacific stocks head for another record high.

Foreigners were net purchasers of R1.5 billion of South African shares Tuesday, according to figures from exchange operator JSE, bringing net inflows over the past three days to about R6.5 billion.

© 2021 Bloomberg L.P.

Source: moneyweb.co.za