SOUTH African stocks erased gains as deadly protests and looting that erupted following former President Jacob Zuma’s jailing showed no signs of letting up, even as the army was deployed to help the police keep it in check.
The FTSE/JSE Africa All Share Index was 0.4% lower by 4:02 p.m. in Johannesburg, as the rand weakened for a second day against the dollar to be the worst-performing emerging-market currency. Locally focused stocks like banks and retailers tracked the rand lower, countering gains from heavyweights Naspers Ltd. and Richemont.
At least 10 people have been killed in South Africa amid riots that broke out following the arrest of former President Jacob Zuma Food and drug retailers dropped 2.7%, while general retailers fell 4.7%.
Mall operator Growthpoint Properties Ltd. fell as much as 5.5%, the most since Dec. 21.
Naspers, with a 14% weighting in the main Johannesburg index, gained 0.4% to provide a boost to the overall market, after Chinese government approval of a deal for partly owned Tencent Holdings Ltd. eased concerns about stricter regulation.
Richemont gained 0.9%, contributing the most index points to the benchmark index, with the luxury retailer buoyed by positive read-across from Swatch Group AG’s update.
Precious metals miners erased earlier losses, rising as gold producers joined the rally in platinum miners.
- Bloomberg
