Stocks rally as strong rand, risk appetite lifts banks

South Africa’s main stock index heads higher for a second day, up 0.5% by 9:25am in Johannesburg, as a recovery in the rand lifts bank stocks, insurers and financials, eclipsing weakness in diversified miners.

Global equities are closing in on levels last seen in February as signs of an economic recovery across major economies and the potential for further stimulus in the US boost investor sentiment.

The White House says US President Donald Trump is exploring whether he can act on his own to extend enhanced unemployment benefits. A slowdown in the rate of coronavirus infections in a number of states also helped sentiment.

• Naspers Ltd., with a 20% weighting on the index, rises for the third day, up 1.1% to provide biggest boost to the index, as partly owned internet giant Tencent Holdings Ltd. gains to the highest level in more than one week.
• Rand-hedge Richemont shakes off a stronger rand to rally 0.9%
• The index for bank stocks halts a three-day slide to jump 3.3%, the biggest gain in four-weeks as the rand recovers ground against the dollar
  • Standard Bank Group Ltd. +3.5%, FirstRand Ltd. +2.1%, Absa Group Ltd. +4.8%, Nedbank Group Ltd. +4.1%, Capitec Bank Holdings Ltd. +3%, Investec Plc +3.8%
• Insurers gain 2.2%
  • Sanlam Ltd. +1.7%, Old Mutual Ltd. +3%, Discovery +2.9%, Momentum Metropolitan Holdings +2.1%, Liberty Holdings Ltd. +2.4%
• Financials advance 1.6%
  • Remgro Ltd. +2%, Reinet Investments SCA +1.6%, PSG Group Ltd. +2.4%, Rand Merchant Investment Holdings +1.6%, Transaction Capital Ltd. +3.6%
• Diversified miners drag the gauge for resource stocks down 0.3%
  • BHP Group Plc -1%, Anglo American Plc -0.3%, AngloGold Ashanti Ltd. -0.4%, Harmony Gold Mining Co ltd. -1.2%
• Pick n Pay falls for a second day, down as much as 3.1% to the lowest intraday level since February 2014, as the company says it sees headline earnings falling by more than 50% in the 26 weeks to August.
• Foreigners remained net sellers for a third day Monday, disposing R2.95bn worth of shares, according to index operator JSE Ltd.

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