South Africa Stocks Edge Higher as Upgrades Boost Bidvest, Tiger

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South Africa’s main stock benchmark index erased losses of as much as 0.4% to edge 0.2% higher by 9:57 a.m. in Johannesburg, as gains in shares upgraded by analysts and a recovery in gold and platinum companies countered weakness in index giants Richemont and Naspers Ltd.

A rally in global equities triggered by the formal start of President-elect Joe Biden’s transition to power cooled Wednesday, with investors weighing optimism spurred by vaccine and political developments against a still challenging economic outlook amid the pandemic. An index of emerging-market stocks was 0.4% lower.

Bidvest Group Ltd., up 3.3%, and Tiger Brands Ltd., which gained 4.5%, were among stocks providing the strongest support to the Johannesburg benchmark index following upgrades by analysts to their recommendations on the companies.

  • NOTE: Bidvest Raised to Overweight at Nedbank CIB; PT 195 rand
  • NOTE: Tiger Brands Raised to Hold at HSBC; PT 201 rand
  • Sasol Ltd. advanced for a third day, up 2.5% to the highest intraday level in more than seven weeks, as crude oil prices climbed.
    • NOTE: Oil Keeps Rising After Eight-Month High on Demand Optimism
    • BHP Group Plc +0.7%, Glencore Plc +1.2%,
      • Sub-index of gold stocks rose for the first day in three, up 0.3% as a weaker rand countered falling bullion prices
        • Gold Fields Ltd. +0.2%, Harmony Gold Mining Co. +0.5%, DRDGold Ltd. +0.3%
        • Sibanye Stillwater Ltd. +1%, Northam Platinum Ltd. +0.5%, Anglo American Platinum Ltd. +0.1%
        • Naspers subsidiary Prosus NV, which holds the company’s 31% stake in Tencent, declines 0.8%
        • NOTE: Rand Pauses After Reaching Nine-Month High: Inside South Africa
        • Capitec Bank Holdings Ltd. -2.3%, Standard Bank Group Ltd. -0.7%, Absa Group Ltd. -0.9%, Nedbank Group Ltd. -1.3%
        • Discovery Ltd. -0.5%, Sanlam Ltd. -0.2%, Momentum Metropolitan Holdings -0.9%

        NEWS:

        • S. Africa’s Rising Debt Is ‘Major’ Threat to Finance Sector
        • South Africa Could Sell Shares in Revived National Airline

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