Stocks rebound from worst week since March on gold boost

South Africa’s main equities index was 0.9% higher as of 9:25 a.m. as global stocks mostly stabilised after a tech-led selloff. Gains in gold miners on Monday helped the Johannesburg benchmark rebound from its worst week since March.

Bullion prices steadied as investors weighed the recent slide in equities against hopes for an economic recovery. A South African index of gold producers advanced 3.2%, with AngloGold Ashanti rising 3.6% and Gold Fields 3.2% higher. The stocks were among the three biggest contributors to the overall market gain. Luxury retailer Richemont climbed 1.6% to provide the biggest boost.

Investors are awaiting key South African economic data this week on second-quarter GDP, the current-account balance, business confidence and mining and manufacturing output, which will give a clearer picture of the performance of the economy during the Covid-19 lockdown.

Bank stocks were higher for a second day, before those readings on the economy, with the sector index rising 1.3%. FirstRand gained 1.6%, Nedbank Group was 1.3% higher and Standard Bank Group up 1.3%.

Market heavyweight Naspers was the biggest drag on the market, with the tech investor falling 0.6% and sliding for a third day, tracking the moves in Tencent in Hong Kong. Naspers owns a 31% stake in Tencent through its unit Prosus NV, which dropped 0.2%.

Foreigners were net sellers of South African stocks for a sixth consecutive day on Friday, disposing of R542 million of shares, according to bourse operator JSE.