SA stocks rise as Biden win amps up risk appetite, Newsline

JOHANNESBURG – 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 United States presidency.

The FTSE/JSE Africa All Shares Index rose as much as 1.4 percent to the highest intraday level since Aug. 27, and was up 1 percent 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 Group lift the gauge for resource stocks for a third day, up 1.8 percent to a two-week high
  • Anglo American +3.3 percent after Morgan Stanley upgraded the company to overweight, citing potential for significant Ebitda increases of about 29 percent if current commodity prices remain in to 2021
  • Impala Platinum Holdings extends gains for a sixth day, up +1.2 percent. BHP +2.4 percent, Gold Fields +1.3 percent, Northam Platinum +1.4 percent, Glencore +2.6 percent, Exxaro Resources +1.7 percent, African Rainbow Minerals +2.1 percent
  • Gains in the rand lift the index for bank stocks up 2.4 percent
  • FirstRand +2.9 percent, Standard Bank Group +1.8 percent, Ansa Group +1.4 percent, Nedbank Group +1.8 percent, Investec +1.7 percent, Capitec Bank Holdings +0.2 percent
  • Food and drug sellers +1.9 percent, while general retailers up 1.3 percent
  • Shoprite Holdings +2.2 percent, Clicks Group +1.6 percent, Spar Group +1 percent, Bid Corp +0.4 percent, Pick n Pay Stores +1.4 percent, Dis-Chem Pharmacies +2.2 percent
  • Mr Price Group +2.5 percent, Woolworths Holdings +1.6 percent, Foschini Group +1.5 percent, Truworths International +2.4 percent, Motus Holdings +3.4 percent, Pepkor Holdings +1.8 percent
  • Life Healthcare Group Holdings drags the index for health care stocks down as much as 9.5 percent, the biggest decline since March 23.
  • Life Healthcare drops 20 percent, the biggest drop on record, after the company was named among those set to be deleted from the MCSI indexes from Tuesday.
  • Life Healthcare peers Netcare -2.4 percent, Mediclinic International -1.4 percent
  • 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.

BLOOMBERG