SA stocks extend record as stimulus hopes boost miners

0:00
play article
Subscribers can listen to this article
A general view of Johannesburg Stock Exchange (JSE) precinct. 
Photo: Gallo Images/Sydney Seshibedi
A general view of Johannesburg Stock Exchange (JSE) precinct. Photo: Gallo Images/Sydney Seshibedi

The Johannesburg Stock Exchange index extended its advance to a fourth day, adding to Wednesday’s record close and tracking moves in most Asian markets amid expectations that US President-elect Joe Biden has a clearer path to boosting fiscal stimulus after key elections.

The FTSE/JSE Africa All Shares Index rose 0.4% as of 9:46 in Johannesburg. An index of mining stocks advanced for a fourth day to an all-time high, with diversified giants BHP Group, which gained 1.5%, and Anglo American [JSE:AGL], up 1.4%, contributing the most points to the broader benchmark. Platinum producers extended their rally, led by Anglo American Platinum’s [JSE:AMS] 4.2% surge.

The Democrats’ victory in two key Georgia runoffs gives them control of the US Senate and has reignited the so-called reflation trade that bets on a global recovery from the pandemic. The rand gained for the first day in five as investors took heart from the Democrat Senate win, offsetting local news including South Africa’s record number of new Covid-19 cases and a fresh round of electricity cuts.

The stronger domestic currency boosted banks, with FirstRand [JSE:FSR], up 0.8%, and Standard Bank [JSE:SBK], up 1.1%, also among key stocks driving the market higher.

South African stocks’ charge to all-time highs has triggered a signal that the rally may be overdone. The 14-day relative strength indicator on the benchmark index has climbed beyond 70, a level regarded by some analysts as warning that the market may have risen too rapidly and be poised for a retreat.

Technical indicator suggests South African stock gains may be overdone. Weakness in tech investor Naspers [JSE:NPN] and its unit Prosus curbed gains in the broader benchmark after reports that the Trump administration may bar investments in China’s two most valuable companies, Alibaba Group and Tencent. Naspers, which holds a 31% stake in Tencent through Prosus, fell 2.2% as its subsidiary retreated 2.6%. Tencent slid 3.5% in Hong Kong.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
15.09
(-0.16)
ZAR/GBP
21.02
(-0.23)
ZAR/EUR
18.22
(-0.19)
ZAR/AUD
11.62
(-0.25)
ZAR/JPY
0.14
(-0.54)
Gold
1734.50
(+0.02)
Silver
26.67
(+0.05)
Platinum
1186.51
(+0.42)
Brent Crude
64.40
(-2.56)
Palladium
2310.00
(+0.58)
All Share
66138.05
(-1.99)
Top 40
60754.30
(-2.11)
Financial 15
12200.05
(-1.09)
Industrial 25
86144.34
(-0.81)
Resource 10
67459.85
(-4.14)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
21% - 1028 votes
No, I did not.
52% - 2568 votes
My landlord refused
28% - 1382 votes
Vote