South African Stocks Seek Direction, Copper Slump Drags Miners

A Caterpillar Inc. mining truck leaves after collecting newly-excavated oxide ore from the open pit at Katanga Mining Ltd.'s KOV copper-cobalt mine, part-operated by the Kamoto Copper Co., in Kolwezi, Katanga province, Democratic Republic of Congo, on Wednesday, Aug. 1, 2012. XXX. Photographer: Simon Dawson , Bloomberg

Adelaide Changole, Bloomberg News

Jun 15, 2021

Share

(Bloomberg) -- South African stocks were little changed Tuesday, struggling for direction as a downturn in copper prices dragged on diversified miners, and falling crude oil prices depressed Sasol Ltd.

The FTSE/JSE Africa All Share Index declined less than 0.1% at 9:35 a.m. in Johannesburg, ahead of a market holiday Wednesday. Commodities retreated.

Like Asian peers, South Africa stocks were mixed ahead of Wednesday’s key Federal Reserve meeting. Investors are awaiting clues about a timetable for scaling back emergency monetary stimulus after a pullback in bond yields eased tapering concerns.

  • Anglo American Plc dropped 1.7% to provide the biggest drag to the index, and pulling the gauge for industrial miners down 0.7%. Copper prices fell to the lowest in seven weeks amid a decline in base metals on concern about possible tightening of monetary policy in the U.S. and as Chinese demand pulled back after a recent rally in prices.
    • NOTE: Copper Falls to Seven-Week Low as Metals Slip on Fed, China
    • Glencore Plc -1%, African Rainbow Minerals Ltd. -0.8%, Kumba Iron Ore Ltd. -0.6%
  • Market heavyweight Sasol Ltd. fell 1.6% as crude oil prices retreated, with investors weighing the outlook for rising demand against extended anti-virus curbs in some economies.
  • Richemont advanced for a second consecutive day, up 0.4% to provide the biggest boost to the benhcmark index, after news that the company was in exclusive talks to acquire Belgium’s Delvaux
    • NOTE: Richemont Is in Talks to Buy Delvaux: Miss Tweed (June 13)
  • Foreigners were net sellers of South African equities Monday, disposing of 400 million rand worth of shares, according to exchange operator JSE Ltd.

For a daily wrap highlighting the biggest movers among EMEA stocks, click here

You want more news on this market? Click here for a curated First Word channel of actionable news from Bloomberg and select sources. It can be customized to your preferences by clicking into Actions on the toolbar or hitting the HELP key for assistance.

©2021 Bloomberg L.P.