South African stocks dropped from a record,
joining peers in Asia in retreating as traders weighed signs of
a slowdown ahead for megacap technology companies and risks from
China’s regulatory crackdown.
The FTSE/JSE Africa All Share Index declined 1.1% by 9:52
a.m. in Johannesburg, dragged lower by weakness in mining giants
Anglo American Plc and BHP Group, along with local market
heavyweight Naspers Ltd. The gauge remains on course for its
strongest month since February.
“The JSE is moderately weaker, as it digests the strong
gains made in the prior two sessions,” said Lester Davids, a
strategist at Unum Capital. “Diversified resource shares, which
have seen a strong run this week, are weaker in early trade
while local-facing shares such as banks and selected industrials
are slightly higher.”
Despite Friday’s losses, the index is still on track for a
sixth consecutive week of gains, the longest winning streak in
more than 14 months. The benchmark has gained 1.2% this week.
The benchmark is up 4% in July, the strongest advance for five
months, and the best July performance since 2017.
- Industrial miners halt an eight-day surge, dropping 2.8%, as
iron ore prices fall to a two-month low as Beijing steps up
** BHP -2.3%, Anglo American -2.6%, Kumba Iron Ore Ltd. -3.4%,
African Rainbow Minerals Ltd. -1.5%
** Glencore Plc -2.9% after its half year production report
*** NOTE: Glencore Boosts Outlook for Another Bumper Trading
*** NOTE: Glencore Drops; MS Sees Soft Production and Operating
- Naspers, with a 14% weighting on the index, halts a two-day
rally, falling 0.8% to drag on the index, as partly owned
Tencent Holdings Ltd. retreats in Hong Kong.
** Naspers holds a 29% in the Chinese gaming giant through
subsidiary Prosus NV, which drops 0.7%
** Why China Is Cracking Down on its Technology Giants:
- Luxury retailer Richemont declines for a second day, falling
** NOTE: Hermes 1H Results ‘Excellent,’ Following LVMH’s Path:
- Precious-metals miners fall for the first day in three,
** Sibanye Stillwater Ltd. -1.9% after company entered into
exclusive put-option agreement to buy Eramet’s Sandouville
nickel hydrometallurgical processing facility.
*** NOTE: Sibanye to Buy French Nickel Facility for 65 Million
** Gold Fields Ltd. -2.1% after 1H trading statement
*** NOTE: Gold Fields Sees 1H HEPS More Than Doubling, AISC
** Impala Platinum Holdings Ltd. -1.2%, Anglo American Platinum
Ltd. -1.7%, AngloGold Ashanti Ltd. -0.5%, Harmony Gold Mining
Co. -1.6%, Royal Bafokeng Platinum Ltd. -1.3%, Northam Platinum
- Bank stocks shake off weaker rand, rise 0.5%.
** FirstRand Ltd. +0.7%, Capitec Bank Holdings Ltd. +0.9%, Absa
Group Ltd. +0.8%, Standard Bank Group Ltd. +0.1%, Nedbank Group
- Foreign investors were net buyers of South African stocks for
the first time in nine sessions Thursday, purchasing 43 million
rand ($2.9million) of equities, according to data from exchange
operator JSE Ltd.