South African Stocks Surrender Gains With Gold Miners in Retreat

(Bloomberg) -- South Africa's main stock index drops 0.2% as of 10:07 a.m. in Johannesburg, giving up an advance of as much as 0.7%, as a drop in bullion drags gold miners lower and a weaker rand weighs on banks.

Markets in Asia had advanced as President Donald Trump's departure from hospital eased concerns about his health, and amid optimism that lawmakers would move closer to providing more stimulus, boosting risk sentiment.

An index of gold miners drops 1.1%, erasing an advance of as much as 0.7%. DRDGold Ltd. drops 2.9%, AngloGold Ashanti Ltd. is 1.3% lower, Harmony Gold Mining Co. falls 0.7%.

• The rand retreats for a second day, dragging index for bank stocks down 0.4%
  • NOTE: Rand Weakens, Yields Rise Before Bond Auction: Inside S. Africa
  • Capitec Bank Holdings Ltd. -1.9%, Standard Bank Group Ltd. -0.9%, Nedbank Group Ltd, -0.8%, Absa Group Ltd. -0.5%
• Developer Balwin Properties gains 7.5%, adding to Monday's 13% surge, following the launch of the Mooikloof project, a public-private partnership. Balwin has climbed to the highest in more than two years after a three-day rally.
• Index heavyweight and so-called rand-hedge Richemont advances for the second day, up 1.5% to the highest in almost a week, as Deutsche Bank raises the luxury goods producer's price target, and as the South African currency weakens against the dollar.
• Foreigners were net sellers of South African stocks for a second day Monday, disposing of 2.32 billion rand worth of shares, according to exchange operator JSE Ltd.

NEWS:

• Central Bankers Pivot From Rescue to Recovery After Recession
• South African Funds See No Imminent Threat of Prescribed Assets

©2020 Bloomberg L.P.

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