MARKET WRAP: JSE snaps five-week losing streak, adding 6.75%

The JSE rose 1.29% on Friday, bringing its weekly gains to 6.75%, buoyed by a strong showing by Naspers and banks. The media giant added 2.99% to reach R2,898.97, once again tracking gains in its Hong Kong-listed associate, Tencent.

World stocks surged, boosted by comments by US President Donald Trump that he was confident a trade deal could be brokered between China and the US.

Naspers has been boosted this week by, among other things, positive earnings reports by US tech companies, and a decision by global index agency MSCI not to penalise it for its dual-share structure. Naspers rose 13.29% in the week.

The all share closed at 54,271.2 points, while the top 40 added 1.45%. Banks gained 3.81%, resources 2.52%, industrials 1.71% and property 1.76%. The banking index rose 9.49% during the week.

Retailers and banking stocks were given a fillip by a falling oil price, which has dropped below $73 a barrel. Brent crude has come under pressure amid signs of rising supply globally, although the imposition of US sanctions on Iran later this month is being closely watched.

Local news took a back seat, with global focus squarely on US non-farm payrolls data for October, which came in much better than expected. US employers added 250,000 jobs last month, well ahead of market expectations of 190,000. Wage growth also hit a nine-year high.

Next Wednesday sees the release of mining and manufacturing production data for August, which should give some direction to stocks in these sectors.

TFG firmed 2.01% to R168.50 ahead of interim results to end-August on Thursday. The company has indicated its performance is within guidance. According to management, sales during the second half of the year remain dependent on Black Friday as well as Christmas, during which they did exceptionally well in the prior year, said FNB Securities analysts.

Diversified miner Glencore lost 2.06% to R60.53 and BHP 1.59% to R298.13.

AB InBev gave up 1.1% to R1,092.46 and British American Tobacco (BAT) 2.87% to R626.

Richemont rose 1.66% to R108.77, adding 5.63% for the week. The company, along with Naspers, was a beneficiary of MSCI’s announcement that it would not penalise any companies for having dual-share structures.

Old Mutual gained 4.12% to R23.73 and Discovery 2.88% to R165.85.

FirstRand gained 4.79% to R68.51 and Absa 3.75% to R158.74.

Shoprite rose 4.08% to R188.13.

Shortly after the JSE closed, the Dow was off 0.2% to 25,332.16 points, while in Europe, the FTSE 100 had gained 0.11%, the CAC 40 0.54% and the DAX 30 0.86%.

At the same time, gold was down 0.17% at $1,231.08 an ounce while platinum had gained 0.64% to $867.72. Brent crude was 0.68% lower at $72.22 a barrel.

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