South African Stocks Slip From Record as Global Rally Pauses

JOHANNESBURG (Capital Markets in Africa) — South Africa’s main stocks index edged lower, retreating from Friday’s record close and set to fall for the first day in six.

Mining stocks were among those dragging most on the market, giving up more of their recent rally. An index of mining stocks, up 12% already this year, retreated for a second session as diversified giant Anglo American Plc dropped 0.9% and BHP Group Plc fell 0.5%.

A weaker rand pulled banking stocks lower, with an index of local lenders falling 1.4%. FirstRand Ltd. and Standard Bank Group Ltd. led declines in the sector, both dropping 1.3%.

The FTSE/JSE Africa All Shares Index dropped 0.1% as of 9:35 a.m. in Johannesburg. The global rally in equities has paused at the start of the week as investors evaluate stretched valuations and some signs that shares may be running too hot.

Still, the local market was supported by strength in benchmark giant Naspers Ltd., which climbed 3% after partly owned Chinese online behemoth Tencent Holdings Ltd. rose as much as 5.1% in Hong Kong to the highest in almost two months. Prosus NV, which holds Naspers’ 31% stake in Tencent, also gained 3% to be the second-biggest contributor of index points to the benchmark.

Gold stocks extended their slide, reflecting reduced demand among investors for havens. An index of South African gold miners dropped for a fourth day, slipping 0.8%. Gold Fields Ltd. fell 1.3% to lead the declines.

Source: Bloomberg Business News