South African stocks set for longest winning streak in 8 years
South Africa’s main stock gauge climbed for a fourth day, rising 0.5% by 09h46 in Johannesburg, as gains by iron ore producers, Richemont and banks countered weakness in gold and platinum producers and local market giant Naspers.
The key index is poised for its longest streak of monthly advances for eight years.
The Johannesburg benchmark tracked peers in Asia, which climbed after solid economic data and President Joe Biden’s federal spending plans spurred a Wall Street rally in cyclical shares.
US data included a drop in jobless claims to a fresh pandemic low. Friday’s move took the weekly rise in the South African gauge to 1.5%, set to climb for the first week in three.
With one trading session left after today for May, the FTSE/JSE Africa All Share Index is poised to rise for a seventh consecutive month, the longest such winning streak since the start of 2013.
Index heavyweight Richemont advanced for a seventh consecutive day, climbing 1.8% to a fresh record. Industrial miners gained 1.1% to the highest level in a week amid renewed optimism around prospects for economic growth.
An index of bank stocks advance for a fourth day, up 1.5% to the highest since 5 March.
Naspers dropped for a second day, down 0.3% to cause the biggest drag to the index, as partly owned Tencent Holdings Ltd. retreated in Hong Kong. Naspers subsidiary, Prosus NV, which holds the company’s 29% stake in Tencent, fell 0.4%
The latest gains for the South African benchmark came despite foreigners remaining net sellers of local equities for a fourth day Thursday, disposing of R2.75 billion ($200 million) worth of shares, according to exchange operator JSE.
Those are the second-highest outflows since the year began. Foreigners have dumped R6.6 billion of Johannesburg stocks since Monday.
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