South African Stocks Set for Best Monthly Winning Streak Since 2014

(Bloomberg) -- South Africa’s main stock index dropped for a second day, slipping 0.4% by 10:21 a.m. in Johannesburg. Friday’s decline left the index little changed on a weekly basis, and trimmed the advance in April to 1.2%, still placing the benchmark on course for a sixth month of gains, the longest such winning streak since July 2014.

A weaker rand pulled banks, insurers and retailers lower, countering gains in local market heavyweights Richemont and Naspers Ltd.

South Africa tracked weakness among peers in Asia at the end of the week, as China’s antitrust crackdown weighed on technology firms. Equity markets may be ready for a pause after a month of gains, with investors eyeing more support for the U.S. recovery after President Joe Biden unveiled a $1.8 trillion social package in addition to his infrastructure plans. And there’s no sign yet of the Federal Reserve withdrawing policy accommodation.

The rand weakened against the dollar Friday, pulling an index of bank stocks down 1.4%, the biggest decline in more than a week.

• NOTE: Traders May Lose Love for Rand in New Month: Inside South Africa
• FirstRand Ltd. dropped 3%, its biggest intraday decline since April 20, after Remgro Ltd. offered 40 million of the bank’s shares.
  • NOTE: FirstRand Offering by Holder Prices at 51 Rand/Share: Terms
• Standard Bank Group Ltd. -1.7%, Absa Group Ltd. -1.8%, Nedbank Group Ltd. -1.5%, Capitec Bank Holdings Ltd. -0.6%

Insurers dropped 0.9%.

• Sanlam Ltd. -0.8%, Old Mutual Ltd. -0.9%, Discovery Ltd. -0.6%, Momentum Metropolitan Holdings -1.5%, Liberty Holdings Ltd. -1.6%

Industrial miners fell for a third day, slipping 0.5% as the iron ore rally paused.

• NOTE: Iron Ore Rally Pauses as China Steel Data Shows Cracks on Demand
• Anglo American Plc -0.5%, BHP Group Plc -0.4%, African Rainbow Minerals Ltd. -1%, Kumba Iron Ore Minerals Ltd. -0.9%

Precious metals producers fell 0.8% to the lowest intraday level since March 31, as gold extended its drop for a second day, while platinum miners disregarded price gains.

• Impala Platinum Holdings Ltd. -1.3% after its third quarter production report.
• Sibanye Stillwater Ltd. -0.4%, Anglo America Platinum Ltd. -0.6%, AngloGold Ashanti Ltd. -0.4%, Northam Platinum Ltd. -0.5%, Harmony Gold Mining Co. -1%, Gold Fields Ltd. -0.1%, DRDGold Ltd. -0.8%

General retailers declined 0.8%, while food and drug sellers slid 0.3%.

• Mr Price Group Ltd. -1.1%, Foschini Group Ltd. -1.1%, Truworths International Ltd. -1.8%, Woolworths International Ltd. -1.8%, Pepkor Holdings Ltd. -0.7%
• Bid Corp Ltd. -1%, Clicks Group Ltd, -0.1%

Index heavyweight and luxury goods retailer Richemont gained 0.9% to provide the biggest boost to the market, while Naspers, with a 17% weighting on the benchmark index, edges 0.4% higher, even as partly owned Chinese online giant Tencent Holdings Ltd. retreated in Hong Kong.

Foreigners were net buyers of South African equities Thursday, purchasing 83 million rand worth of shares, according to exchange operator JSE Ltd.

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