JSE up as Naspers boosts index

THE JSE closed firmer yesterday as Naspers’s share price reached a record high‚ supporting positive sentiment toward rand hedges.

Its rise came despite the rand weakening slightly.

Naspers surpassed its previous high, in September, on foreign buying – as the group was singled out as a favourite South African share investment in a report on the Dow Jones newswires.

“Naspers‚ with its shares tracking global tech peers‚ has returned more than 25% in the past year‚ and may be the investment to consider‚” the report said.

The media giant also enjoyed investor support amid indications that its Chinese investment Tencent might be going places‚ with WeChat users within the Tencent fold set to grow strongly in the longer term. Naspers owns 34% of Tencent.

Naspers firmed 1.85% to R2 536.72. Anheuser-Busch InBev added 1.66% to R1 493.48 and Richemont 2.82% to R108.35.

The marginally weaker rand created opportunities for the market caps‚ with financials and food and drug retailers coming back. Gold shares‚ platinum stocks and general retailers were weaker.

Stanlib investment director Paul Hansen said the JSE had been hurt of late‚ not only by the stronger rand‚ but also the global tumble in mining and resource shares.

“However‚ with the global economy picking up‚ the demand for resources will increase‚” he said.

The JSE all-share closed 0.63% higher at 53 257.4 points and the blue-chip Top 40 added 0.73%.

Industrials lifted 1.09% and food and drug retailers 0.65%.