JSE led higher by Naspers as global risks persist
The JSE was firmer on Wednesday afternoon led by banks and Naspers, even though risk events loom in the form of Brexit.
European markets opened the day mixed on Wednesday after newly re-elected UK Prime Minister Boris Johnson vowed to block an extension of the EU trade talks beyond 2020, reviving investors’ fears of a no-deal Brexit.
On Tuesday, Johnson used the power of his newly won parliamentary majority to set a hard deadline of December 2020 to reach a new trade deal with the EU, with the UK set to leave the bloc by January 31, in a bid to strong-arm the bloc into hastening an accord, reported CNBC.
After an overall positive lead on Tuesday, the Asian markets were mixed on Wednesday morning after data revealed a sharp fall in Japan’s exports, slipping for a 12th straight month in November, leading to Japanese shares losses.
Earlier, the Japan’s Nikkei fell 0.55% and the Shanghai Composite 0.18%. Hong Kong’s Hang Seng was up 0.15%.
Tencent, however, added 1.72%, giving direction to its largest shareholder, Naspers.
At 13.21pm Naspers was up 2.05% to R2,251.10.
The all share rose 0.94% to 57,864.2 points while the top 40 rose 1.09%. Banks added 1.87% and industrials 1.18%.
Gold rose 0.22% to $1,479.15/oz while platinum gained 0.56% to $931.53/oz. Brent crude was flat at $65.82 a barrel.
Sasol was up 5.87% to R323.53, extending an 11.69% gain on Tuesday, when it reported improved production levels at its Lake Charles Project in the US.
Markets are also waiting for a vote in the US House of Representatives to further the impeachment process of US President Donald Trump later on Wednesday; however, the Senate is ultimately expected to dismiss this, meaning Trump will remain in the White House.
There are a number of risks arising from the impeachment attempt, said London Capital Group head of research Jasper Lawler in a note. Should impeachment occur, it could cause political instability, while if it does not, acrimony between political parties in the US may prevent progress on other policies, he said.
Investors are still waiting for clear details on phase one of the US-China trade deal made last week, which the US officials insist have been completed and will be signed in January.
Trump’s administration is finalising a set of narrow rules limiting exports of sophisticated technology to China and other adversaries. US tech companies may receive some reprieve, having feared a more stringent crackdown, Reuters reported on Tuesday.
Source: businesslive.co.za
