Risk tolerance aids banks, Naspers

The JSE began the week on a positive note, gaining more than 1% for the third consecutive session, as global stocks continued to be in favour.

Banks and Naspers were boosted the most by ongoing positive sentiment towards risk assets, although some miners were also higher despite a firmer rand.

The risk-on climate is a result of upbeat US jobs numbers on Friday, which exceeded analyst expectations in terms of both employment and wage growth.

“What an incredible run the US jobs market has had since the crash of 2009. US workers like to consume, so this is great news for everybody,” said Vestact analysts.

Local corporate announcements prompted a mixed reaction from investors on the day.

A strong performance by Naspers provided a fillip to the local bourse. The shares have gained 8% in the past two trading days, tracking gains in Hong Kong-listed Tencent.

The all share rose 1.03% to 57,780.90 points and the top 40 1.04%. Banks gained 2.66% and food and drug retailers 1.82%. Gold miners fell 0.76%.

Anheuser-Busch InBev was lifted 2.76% to R1,214.06 while British American Tobacco fell 1.38% to R637.08.

Richemont gained 0.51% to R116.85, after earlier announcing the acquisition of second-hand luxury watch trading site watchfinder.co.uk, as well as the disposal of French leather goods company Lancel.

Stadio rocketed 17.86% to R4.62, after saying earlier its student enrolment had more than doubled over the past six months.

Novus slipped 2.56% to R3.80, after earlier reporting that CEO Keith Vroon had resigned.

Sirius Real Estate fell 0.96% to R11.29 despite raising its total dividend for the year to end-March 8.2%. Naspers gained 2.18% to R3,268.75. At 5.40pm the Dow was up 0.71% to 24,810.91 points, while in Europe, the DAX 30 had gained 0.43%, the FTSE 100 0.38% and the CAC 40 0.21%.

At the same time, gold was flat at $1,293.59 while platinum had fallen 0.18% to $901.81. Brent crude was 1.23% lower at $75.63.

The top 40 Alsi futures index gained 1.3% to 51,750 points. The number of contracts traded was 29,197 from Fridays 23,674.