Tuesday , August 4 2020

South African stocks drop as gold frenzy pauses


South Africa’s main stock index erases gains of as 0.3%, to decline 0.6% by 9:54 am in Johannesburg, with gold shares retreating the most in more than a month as the rally in bullion cools. Luxury retailer and market heavyweight Richemont weighs on the benchmark index after earnings from French peer LVMH disappoint analysts.
Globally, investors are betting setbacks in the fight against the coronavirus will lead Fed Chairman Jerome Powell to signal Wednesday that rates will stay near zero for longer. Health officials are tackling rising cases in countries ranging from China to Spain and Germany, underscoring the difficulty of curbing the pandemic.
South Africa secured a $4.3 billion in emergency loan from the International Monetary Fund, the largest emergency disbursement for any country yet. The funds will go toward supporting government efforts addressing the challenging health situation and severe economic impact of the Covid-19 shock, the Washington-based lender said.
Luxury retailer Richemont, falls for the third day, down 1.3%, providing biggest drag on the index, after French peer LVMH missed analysts’ profit estimates.

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