Top performer Naspers propels bourse to hit highs

STOCKS booked their highest close on record yesterday, as media group Naspers scaled new highs, propelled by a surge in Chinese internet company Tencent.

The Top40 index surged 0.92 percent to a record closing level of 42 478.88 points. The wider all share index finished the day 0.86 percent higher at 47 027.54, marking the second consecutive session of gains for the market.

Transaction Capital rose 4.23 percent to R7.40 after saying it would pay out a special distribution of R2.10 a share to shareholders.

Sibanye Gold was another star performer, adding 3.19 percent to R20.40 after it said its economically extractable reserves were around 46 percent above its previous estimate.

“Their life of mine profile is longer, so you can discount even more years of earnings into the share price, and that’s the reason why it’s been rerated,” Mohammed Nalla, the head of strategic research at Nedbank Capital, said.

Both indices are within easy range of record highs helped by renewed foreign interest on expectations the US Federal Reserve will not disrupt its gradual pace of monetary stimulus withdrawal.

Last week offshore investors were net buyers of R1.2 billion worth of South African shares, data from the JSE showed yesterday.

That is a reversal of the trend so far this year, as foreign investors remain net sellers of South African shares to the tune of R5.8bn.

A consistent top domestic performer has been Naspers, which added 4.41 percent yesterday to R1 273 after hitting its highest point of R1 275 earlier in the day. Tencent gained almost 6 percent in Hong Kong on speculation it would take a 20 percent stake in Chinese restaurant-review site Dianping for $400 million (R4bn) to expand its social media empire.

Advancers topped decliners 202 to 115, according to preliminary bourse data, while almost 177 million shares changed hands.