JSE starts week on firm foot with Naspers boost

THE JSE closed firmer yesterday in broad-based gains – mainly by Naspers – as the market heavyweight reached a new high from its previous best level in May.

Naspers is the third-largest firm on the JSE by market cap.

It reached a record R2 873.93 in intraday-trade after its Chinese Tencent investment‚ of which it owns about a third‚ rocketed in Hong Kong trade.

Chinese authorities last week put a clamp on WhatsApp’s activities‚ thereby boosting Tencent’s messaging app, WeChat.

Tencent effectively operates in a closed market. Naspers has gained 42% so far this year and closed 1.92% higher at R2 860.

Vodacom and Capitec also both hit new records. Banks and retailers found support from a slightly weaker rand to the dollar‚ but the rand still held up at levels below R13 to the dollar following last week’s surprise interest-rate cut.

The JSE all-share closed 0.38% higher at 54 368.6 points and the blue-chip Top 40 added 0.54%.

General retailers rose 0.84%‚ industrials 0.71%‚ property 0.53% and banks 0.45%.

Platinums shed 2.45% and food and drug retailers 0.65%.

Platinum stocks were partly affected by results of a first-half R1.3-billion after-tax loss from Anglo American Platinum. It lost 1.94% to R305.47.

PPC shares slumped as much as 10% following a hasty resignation of its chief executive. PPC ended 9% lower, at R4.45.

Concern that emerging markets might be affected by US rate hikes have abated.