South African stocks fell the most in more than six weeks as investors sold emerging-market on concern that slower Chinese manufacturing and less Federal Reserve stimulus will drive capital outflows.
The benchmark 165-member FTSE/JSE Africa All-Share Index slid 1.5 percent, the most since Dec. 12, to 45,750.70 by the close in Johannesburg. The MSCI Emerging Markets Index slumped 1.7 percent, the most since August.
“There are liquidity concerns globally,” Simon Fillmore, chief executive officer of Independent Securities (Pty) Ltd., said by phone from Johannesburg. “People that have cash in emerging markets are selling assets in emerging markets, selling risk assets and moving that cash into safe heavens.”
The Fed will cut its purchases in $10 billion increments over the next six gatherings before announcing an end to the program no later than December, according to the median forecasts of economists in a Bloomberg survey Jan. 10. Chinese factory output may shrink this month, a preliminary survey from HSBC Holdings Plc and Markit Economics indicated last week. China is the biggest buyer of South African raw materials.
Naspers Ltd., Africa’s largest media company, slid 5.1 percent to 1,034.63 rand, the lowest in more than a month. The Cape Town-based company owns a 34 percent stake in China’s Tencent Holdings Ltd., which fell a third day in Hong Kong trading.
Standard Bank Group Ltd., the continent’s biggest lender, declined 2 percent to 120.50 rand, the lowest since Dec. 13. Netcare Ltd., an owner and operator of private hospitals in South Africa and Britain, slumped 4.1 percent, the lowest since July 29, to 22.56 rand.