SA stocks edge lower in risk-off mood before GDP data

South Africa’s main stock benchmark index halted a five-day rally, dropping 0.1% by 9:45 a.m. in Johannesburg and slipping from the highest close since April 2019, as a downturn in miners and weakness among banks pulls the market lower.

The gauge joined peers in Asia in declining Tuesday, as swelling coronavirus infections across the US weighed on risk assets overnight.

Investors will be awaiting South Africa’s third-quarter gross domestic product numbers, with the country estimated to have exited its technical recession in the three months through September.

• Index of bank stocks retreated for a second day, down 0.7% as the rand weakened.
  • Standard Bank Group -0.5%, Investec -1.3%, FirstRand -0.4%, Capitec Bank Holdings -1.1%, Absa Group -1%.
• Insurers -0.8%.
  • Sanlam -0.8%, Old Mutual -0.8%, Discovery -0.9%, Liberty Holdings -1.3%, Momentum Metropolitan Holdings -0.4%.
• Gauge of mining stocks dropped 0.2%, as weakness in diversified miners drowned out gains from gold and platinum companies.
  • BHP Group fells 0.5% to cause the biggest drag on the overall market. Exxaro Resources -0.3%, Glencore -0.3%.
  • Gauge of gold stocks extended gains for a second day, up 0.9% as bullion prices climb amid swelling coronavirus infections across the US.
    • Gold Fields +1.5%, Harmony Gold Mining +1.4%, DRDGold +3.3%, Pan African Resources +2.5%.
  • Index for platinum stocks +0.3%.
    • Sibanye Stillwater +0.6%, Impala Platinum Holdings +0.6%, Anglo American platinum +0.4%.
• Naspers gained 0.2% to provide biggest boost to the index, as partly owned Tencent Holdings advanced in Hong Kong.
• Foreigners were net buyers of South African stocks for a second day Monday, purchasing R212 million worth of shares, according to exchange operator JSE Ltd.