Newsdeck: South African Stocks Post Biggest Drop This Month on Tencent Effect

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South Africa’s main stocks index declined 1% by 9:53 a.m. in Johannesburg, the biggest intraday decline in 2021, after a slump in Tencent Holdings Ltd. in Hong Kong pulled benchmark giant Naspers Ltd. and its subsidiary, Prosus NV, lower.

Tencent lost as much as 6.7% in Hong Kong on Tuesday, as traders took profit after Monday’s 11% surge, which was Tencent’s biggest in almost a decade. Investors were also concerned by comments by an adviser to China’s central bank indicating that excessive liquidity and ultra-low borrowing costs were creating bubbles in the stock market.Naspers fell 3.5% from a fresh record close, the biggest decline since Dec. 28, and causing the strongest drag on the overall market.

Sibanye Stillwater Ltd. joined platinum and gold companies to pull miners lower for a third day, with the sector index dropping 0.3%. Sub-index for gold companies dropped 0.4% as investors counted down to this week’s Federal Reserve policy meeting, and tracked the Biden administration’s efforts to deliver a $1.9 trillion Covid-19 relief proposal.Gold Fields Ltd. -2%, Harmony Gold Mining Co. -1%, DRDGold Ltd. -2%, Pan African Resources Plc -1.6%

with a resurgent Covid-19 outbreak in some regions and a slow roll-out of vaccinations weighing on the demand outlook, offsetting tightening global supply.Mr Price Group Ltd. -1.6%, Foschini Group Ltd. -0.9%, Truworths International Ltd. -0.9%, Motus Holdings Ltd. -1%, Massmart Holdings Ltd. -1%

 

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