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JSE ends higher, but valuations weigh

Johannesburg - South African stocks edged up on Monday as a global equity rally helped lift investor favourites such as e-commerce firm Naspers, although nagging concerns about valuations kept gains in check.

Shares of Nampak rose 3.3% to R31.77 after the packaging firm said it would spend R3bn on an acquisitions in Nigeria.

World shares hit a near six-year high, boosted by signs of ambitious economic reform in China and the prospect of extended stimulus in the United States.

"I do think there's going to be a slow uptick into the end of the year," said Kyle Dutton, a broker at Mercato Financial Services in Johannesburg.

"But there's got to be some correction with the valuation we've got in our market."

The benchmark Top-40 index rose 0.49% to 40 593.96. The index is trading at 20 times its average earnings, making South Africa among the world's most expensive emerging equity markets.

The broader All-Share gained 0.56% to 45 428,85.

Media and e-commerce firm Naspers gained 1.2% to R945. The company owns more than 30% of China's Tencent Holdings, which rose more than 6% in Hong Kong trade, boosted by the China rally.

Fixed-line operator Telkom SA rose 1.3% to R27.05. The company reported a sharply higher H1 profit on Monday and said it was looking at options for the future of its struggling mobile unit.

Shares of Barloworld rose 1.8% to R98.20 after the industrial group posted a 27% rise in full-year profit.

Trade was slow, with just 156 million shares changing hands. Advancers outnumbered decliners, 181 to 118.


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Rand - Dollar
18.87
+0.3%
Rand - Pound
23.84
+0.3%
Rand - Euro
20.38
+0.3%
Rand - Aus dollar
12.32
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
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Top 40
68,346
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All Share
74,536
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Resource 10
57,251
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Industrial 25
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Financial 15
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