JSE climbs on Friday as Naspers hits seven-month high
The JSE followed global equity markets higher on Friday morning, with the local bourse buoyed by Naspers and industrial stocks.
Thanks to its 31% stake in China’s Tencent, JSE-heavyweight Naspers was 1.8% higher at R3,363.75, its best level in about seven months.
The all-share index was up 0.5% to 56,328.4 points and the top 40 was 0.6% higher. Industrials were up 0.8%, while gold miners shed 1.2%.
Kumba Iron ore was 3.8% up at R427.50, while Sappi was 2.2% higher at R66.63. Vivo Energy was 4.6% down at R23 and Netcare was 4.5% lower at R22.70.
Gold was 0.1% down at $1,289.19/oz while platinum was up 0.7% to $845. Brent crude was 0.1% higher at $68.03 a barrel.
After the Reserve Bank’s monetary policy committee kept rates unchanged on Thursday, focus has shifted to SA’s trade balance data due Friday. More importantly, the country awaits a possible ratings decision from Moody’s.
Most analysts expect SA’s rating outlook to be changed from stable to negative, paving the way for a possible downgrade in November.
However, “should SA receive a credit rating downgrade from Moody’s this week, the rand could depreciate materially, although its path is also influenced by global markets’ prevailing tolerance of risk”, Investec economist Annabel Bishop said on Thursday. “If the markets are risk averse, currency weakness from an emerging-market rating downgrade tends to be more pronounced than in a risk-on period.”
Global markets were generally buoyant on Friday, partly due to optimism about a resolution to the trade spat between the US and China. Reuters reported that China had made “unprecedented proposals”, including on the transfer of technology, in its talks with the US.
Earlier on Friday, Phumelela Gaming & Leisure said headline earnings fell 18% in the six months ended January, to R68m, due largely to a “disappointing” performance in SA.
The group canned its interim dividend “in the interests of conserving cash and with a view to future capital commitments”.
Source: businesslive.co.za