Bank Stocks in Johannesburg Feel the Pain as Investors Shun Risk

  • Bond yields climb to six-month highs, driving up bank costs
  • Emerging-market rather than local issues, at play: PSG Wealth

Photographer: Nadine Hutton/Bloomberg

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South African bank stocks tumbled to their lowest levels this year, victims of an aversion among investors toward riskier, emerging-market assets as the U.S. and China square up for a trade war.

Johannesburg’s banking-sector benchmark slumped as much as 3.8 percent Tuesday to levels last seen in December. It’s on track for the deepest three-day decline since December 2015.