South African Stocks Drop Before Unemployment Data Announcement

South Africa‘s main stock benchmark declines 0.3% by 9:42 a.m. in Johannesburg, before the release of data that may show the unemployment rate in the country rose to a record in the second quarter. Banks retreated after surging by the most in almost three weeks in Monday’s session.

Unemployment is expected to increase to 35%, according to the median estimate in an economist survey, the highest among 83 countries tracked by Bloomberg.

Stubbornly High

South Africa's jobless rate rose to a 17-year high before virus restrictions

Source: Statistics South Africa

Note: Expanded unemployment rate includes official rate, discouraged job seekers and those not searching for jobs

• An index of bank stocks falls 0.9% as the rand weakens; sector retraces some of Mondays surge of 6.4%, which was the sharpest gain since Sept. 9

• FirstRand Ltd. -0.9%, Absa Group Ltd. -1.2%, Standard Bank Group Ltd. -0.5%, Capitec Bank Holdings Ltd. -0.9%, Nedbank Group Ltd. -0.1%

• Financials drop 0.8%

• NOTE: Remgro CEO Sees Growth Opportunities in Infrastructure and Food

• Remgro Ltd -1.3% after company publishes results for the year to June

• Reinet Investments SCA -1%, Quilter Plc -1.3%, Rand Merchant Investments Holding -1.3%, JSE Ltd. -1.4%

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• Insurers -0.9%

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• Old Mutual Ltd. -2%, Sanlam Ltd. -0.8%, Discovery Ltd. -1%, Liberty Holdings Ltd. -0.8%

• Naspers Ltd. -0.3%, Sasol Ltd. -2.4%, Richemont -0.3%

• Gains by gold producers counter weakness among diversified miners, lifting gauge pf mining stocks, which rises 0.3%

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• Gold Fields Ltd. +2.3%, AngloGold Ashanti Ltd. +1.1%, Harmony Gold Mining Co Ltd. +2.3%, DRDGold Ltd. +2.2%, Pan African Resources Plc +1.7%

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• Sub-index of gold stocks rises for a third day, the longest winning streak since July 27, as bullion gains amid igns of further stimulus in the U.S. and Europe

• BHP Group Plc -0.7%, Anglo American Plc -0.7%, Glencore Plc -1.7%, Exxaro Resources Ltd. -0.3%, African Rainbow Minerals Ltd. -0.4%

• Foreigners remained net sellers of South African stocks for a seventh day Monday, disposing of 206 million rand worth of shares, according to exchange operator JSE Ltd.