SA stocks in fifth weekly gain, Telkom slips on CEO exit

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South African stocks advanced for a fourth consecutive session, the longest winning streak since June 2, joining gains in global peers amid earnings optimism that helped Wall Street edge toward an all-time high despite mixed economic data. Telkom (-2.6%) dragged on the market on news its chief executive officer will step down.

The FTSE/JSE Africa All Share Index was up 1% by lunchtime . in Johannesburg, trading at its highest level in more than a week, as a broad rally led by miners and banks countered losses in index giant Naspers Ltd. as well as telecommunications providers.

Friday’s gains set the index on track for a fifth consecutive weekly advance, the longest winning streak since May 2020. The index is 2% higher since Monday, its best weekly performance since May 7.

“Local equities in are positive territory, having taken their lead from stronger global markets, which have risen on the back of corporate earnings, among other factors,” said Lester Davids, a strategist at Unum Capital. “Stock leadership appears to be broad-based with Sasol, MTN and Anglo American among the biggest gainers so far in the session.”

The gains come after the South African Reserve Bank left interest rates unchanged at 3.5% and signaled a more dovish policy path.

“Our house view is dovish; SARB to begin hiking rates in mid-2022,” Matete Thulare, an analyst at Rand Merchant Bank, said in a client note.

Global stocks are on course for a modest weekly gain, bolstered by robust corporate profits and stimulus support. At the same time, July’s decline in 10-year U.S. Treasury yields may signal concern over a possible peak in economic growth, in part as the delta coronavirus strain curbs mobility in some nations.

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