JSE pushes higher as Naspers jumps and risk appetite returns

The JSE posted a second day of broad-based gains on Friday, as miners and banks continued their upward trajectory in risk-on trade.

Gains in the retail sector were modest, despite a results statement from Shoprite that sent its share higher. Miners were firmer, having been in favour for much of the week.

Global markets rose following a political resolution to Italy’s crisis, with analysts also saying that despite the US’s imposition of steel and aluminium tariffs on the EU, the market appeared to be partially pricing in a resolution.

Market heavyweight Naspers leapt 5.72% to R3,198.95, tracking gains in Hong Kong-listed Tencent. This was despite issues that should put pressure on the share. Two investor presentations during the week pointed to a less bullish outlook by analysts towards Chinese internet companies, reported Dow Jones Newswires.

Tencent’s share price also brushed off further media reports in China that were critical of the moral and psychological effect of gaming on Chinese youth.

The rand managed to hold onto its gains against the dollar on Friday, despite US jobs numbers earlier surprising to the upside. Local bonds were weaker, with analysts expecting the trend to continue in the short-term.

The all share rose 2% to 57,282.1 points and the top 40 2.19%. Industrial gained 2.37%, platinums 2.01% and property stocks 1.24%.

The JSE rose 0.64% in the week.

Sasol jumped 5.25% to R481.50 and Assore 6.04% to R289.76.

Barclays Africa gained 3.58% to R167.47 and Capitec 2.63% to R897.41.

Vodacom added 2.98% to R147.77 and MTN 2.8% to R117.71.

Mr Price was up 1.85% to R255.65, after earlier reporting that overall revenue grew 8% to R21.3bn and its net profit 23% to R2.8bn in the year to end-March.

Tongaat Hulett slipped 2.25% to R79.18, after an Investec report on Thursday sent that share sharply lower. The institutional investor called for Tongaat’s CEO Peter Staude to step down, after Monday’s “appalling” results, which revealed a 37% plunge in headline earnings per share.

Shortly after the JSE closed the Dow had gained 0.83% to 24,620.34 points, while in Europe, the CAC 40 had added 1.41%, the DAX 30 1.22% and the FTSE 100 0.5%.

At the same time gold had fallen 0.11% to $1.296.50 an ounce while platinum was up 0.16% to $909.08. Brent crude had fallen 1.49% to $76.61 a barrel.

The top 40 Alsi futures index gained 2.34% to 51,139 points, having gained 0.63% for the week. The number of contracts traded was 23,674 from Thursday’s 30,208.