South African Stocks Resume Climb as Anglo Leads Miners Higher

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Dumper trucks operate in the iron ore excavation pit at the Sishen open cast mine, operated by Kumba Iron Ore Ltd., an iron ore-producing unit of Anglo American Plc, in Sishen, South Africa, on Tuesday, May 22, 2018. Kumba Iron Ore may diversify into other minerals such as manganese and coal as Africa’s top miner of the raw material seeks opportunities for growth and to shield its business from price swings. Photographer: Waldo Swiegers/Bloomberg
Dumper trucks operate in the iron ore excavation pit at the Sishen open cast mine, operated by Kumba Iron Ore Ltd., an iron ore-producing unit of Anglo American Plc, in Sishen, South Africa, on Tuesday, May 22, 2018. Kumba Iron Ore may diversify into other minerals such as manganese and coal as Africa’s top miner of the raw material seeks opportunities for growth and to shield its business from price swings. Photographer: Waldo Swiegers/Bloomberg

(Bloomberg) -- South Africa’s main stock index gained 0.5% as of 9:49 a.m. in Johannesburg, heading for a fresh record close, as mining stocks benefited from optimism over U.S. stimulus spending that could spur an economic rebound and boost demand for metals.

The FTSE/JSE Africa All Share Index resumed its advance after falling Tuesday for the first day in seven, pausing a rally that saw the gauge notch up four all-time closing highs. South African stocks have rebounded almost 70% from the low plumbed last March during the global selloff spurred by the pandemic.

Anglo American Plc, the diversified mining giant, gained 0.5% and peer BHP Group Plc rose 0.3% to be among the leading contributors to the overall market strength. An index of mining stocks was 0.6% higher, snapping three days of losses.

Fuel and chemicals producer Sasol Ltd. rallied a further 3.7% to a seven-month high, with oil poised for the longest winning streak in almost two years. Sasol has surged 31% this month, making it Johannesburg’s top-performing stock of 2021 so far.

Naspers Ltd., the global tech investor that carries the biggest weighting in the benchmark index, advanced 1.4% to provide the biggest boost to the gauge as partly owned Chinese online giant Tencent Holdings Ltd. rose in Hong Kong, helping MSCI Inc.’s index of Asia-Pacific stocks head for another record high.

Foreigners were net purchasers of 1.5 billion rand ($98 million) of South African shares Tuesday, according to figures from exchange operator JSE Ltd., bringing net inflows over the past three days to about 6.5 billion rand.

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