Naspers rally helps lift JSE

The JSE started the week on a positive note with Naspers jumping more than 2%, as risk-off sentiment paused amid indications that a trade war between the US and China might be averted. Naspers ended last week 5.68% lower after Chinese internet company Tencent, in which it owns 31%, delivered disappointing quarterly results.

The JSE started the week on a positive note with Naspers jumping more than 2%, as risk-off sentiment paused amid indications that a trade war between the US and China might be averted.

Naspers ended last week 5.68% lower after Chinese internet company Tencent, in which it owns 31%, delivered disappointing quarterly results. Naspers ended Monday 2.14% higher at R3,248. The gain trimmed losses in 2018 to 5.8%.

Banks and financials on the JSE shrugged off choppy trade in the rand, while property stocks failed to find support following Resilient’s flat annual numbers, released on Friday.

The euro was under pressure again in late trade after winning back some lost ground earlier, as the market prepared for the release of the US Federal Reserve’s federal open market committee minutes on Wednesday.

Investors are expected to watch central bank comments closely for any insights into the effect of a strengthening dollar on emerging markets and the course of interest rate increases, Dow Jones Newswires said.

The all share closed 0.88% higher at 57,145.60 points and the top 40 rose 0.99%. Industrials gained 1.22%, platinums 1.2%, banks 1.07%, financials and resources both 0.54%, and general retailers 0.39%. The gold index dropped 2.01% and property 0.32%.

Sasol closed 1.04% lower at R523. It reported full-year net profit to endJune shrank by more than half, to R10bn in 2018 from R21.5bn in 2017, but revenue rose 5% to R181bn.

FirstRand rose 1.4% to R63.85 while Woolworths added 0.99% to R50.90.

The rand battled to hold on to the firmer levels it reached earlier on Monday. After touching R14.4534/$ from R14.6952/$, the local currency had again weakened to R14.63/$ by the JSE’s close.

Local bonds were slightly firmer ahead of the release of consumer inflation data for July, due on Wednesday. The consumer price index is expected to have increased to 4.9% year on year, or even higher, from 4.6% in June.

The R186 was bid at 9% from 9.04%. The US 10-year treasury was last seen at 2.8271% from 2.8587%.

The top 40 Alsi futures index gained 0.93% to 50,942 points. The number of contracts traded was 20,693 from Friday’s 22,487.