SA stocks rise as Biden win amps up risk appetite

South Africa’s main stock gauge joined global peers in rising for a sixth consecutive day Monday, as investors cheered the optimism about the outlook under a Joe Biden US presidency.

The FTSE/JSE Africa All Shares Index rose as much as 1.4% to the highest intraday level since August 27, and was up 1% as of 9:48 a.m. in Johannesburg, as risk-on sentiment helped boost 101 of the 141 listed companies.

“The Joe Biden win saw risk assets gain momentum, with markets banking on more stability, while a divided congress will still ensure low interest rates for longer and potential fiscal stimulus,” Bianca Botes, executive director at Peregrine Treasury Solutions, said in an emailed report.

Diversified miners Anglo American and BHP lift the gauge for resource stocks for a third day, up 1.8% to a two-week high.

Anglo American +3.3% after Morgan Stanley upgraded the company to overweight, citing potential for significant Ebitda increases of about 29% if current commodity prices remain in to 2021.

Impala Platinum extends gains for a sixth day, up +1.2%. BHP +2.4%, Gold Fields +1.3%, Northam Platinum +1.4%, Glencore +2.6%, Exxaro Resources +1.7%, African Rainbow Minerals +2.1%.

Gains in the rand lift the index for bank stocks up 2.4%.

FirstRand +2.9%, Standard Bank +1.8%, Absa +1.4%, Nedbank +1.8%, Investec +1.7%, Capitec +0.2%.

Food and drug sellers +1.9%, while general retailers up 1.3%.

Shoprite +2.2%, Clicks +1.6%, Spar +1%, Bid Corp +0.4%, Pick n Pay +1.4%, Dis-Chem +2.2%.

Mr Price +2.5%, Woolworths +1.6%, Foschini +1.5%, Truworths International +2.4%, Motus Holdings +3.4%, Pepkor+1.8%.

Life Healthcare  drags the index for health care stocks down as much as 9.5%, the biggest decline since March 23.

Life Healthcare drops 20%, the biggest drop on record, after the company was named among those set to be deleted from the MCSI indexes from Tuesday.

Foreigners were net buyers of South African stocks for a second day Friday, halting, purchasing R666 million worth of shares, according to exchange operator JSE Ltd.