SA stocks fall, paring best November gains since 2001

South Africa’s main stock benchmark index dropped for a second day, down 1.1% by 9:42 a.m. in Johannesburg, the biggest intraday decline in more than a week, as market giant Naspers joined diversified miners and banks in pulling the main gauge lower.

Risk-off sentiment was evident in early trade, with 91 of the 141 listed companies declining, while 37 traded higher.

Monday’s weakness trimmed the index’s advance in November to 11%, the first monthly gain since July. The benchmark remained on track for its best month since April, and the best November since 2001.

Global equities are up 13% in November as positive vaccine news helped drive expectations that a global economic recovery can pick up in 2021, helping flows into companies with earnings more closely tied to a rebound in growth.

• Naspers, with a 19% weighting in the benchmark, retreated for a second day, down 1% to the lowest in a week, causing the biggest drag on the market, as partly owned Tencent Holdings Ltd. slid in Hong Kong.
  • Naspers subsidiary Prosus NV, which holds the company’s 31% stake in Tencent, retreated 1%.
• Index of bank stocks fell for a second day, down 2.1% to the lowest intraday level in a week, as the rand weakened.
  • Standard Bank fell 2.3% after publishing trading update.
  • FirstRand -2.2%, Absa -3.3%, Nedbank -3.3%, Capitec 1.4%, Investec Plc -2.4%.
• Diversified miners led the broader sector’s gauge lower for a second day, with the index down 0.5%.
  • BHP Group Plc -1.1%, Anglo American -0.6%, Impala Platinum -1.1%, Northam Platinum -1.2%, African Rainbow Minerals -1.9%, Anglo American Platinum -0.4%, Exxaro -1.1%, Glencore Plc -0.9%, Royal Bafokeng Platinum -0.8%.
  • Index of gold companies rose 1.3%.
    • AngloGold Ashanti +1.8%, Gold Fields +0.5%, Harmony Gold +1.6%, Gold Fields +0.5%, DRDGold +1.9%.
• Insurers -2.8%.
  • Sanlam -3.3%, Old Mutual -2.6%, Discovery -2.7%, Momentum Metropolitan Holdings -2.7%, Liberty Holdings -2.7%.
• Foreigners turned net buyers of South African stocks for the first time in 10 days Friday, purchasing R140 million worth of shares, according to exchange operator JSE Ltd.