South African shares set for longest winning streak since 2013

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South Africa’s main stock gauge climbed for a fourth day, rising 1% by mid-morning on Friday in Johannesburg, as gains by iron ore producers, Richemont and banks countered weakness in gold and platinum producers. 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.

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. It is up more than 30% from a year ago.

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. Anglo American (+1.2%), BHP Group (+0.7%) and Glencore (+1.7%) were among the biggest movers

An index of bank stocks advance for a fourth day, up 1.5% to the highest since March 5.

Nedbank’s share price jumped 7% after the company released a strong trading update for the first four months of its financial year.

An index of precious metals producers dropped 0.2% as gold and platinum prices slipped. AngloGold Ashanti lost 2%.

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 worth of shares, according to exchange operator JSE. Those are the second-highest outflows since the year began. Foreigners have dumped R6.6 billionof Johannesburg stocks since Monday.

Source: News24

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