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Johannesburg - Share prices rose in early trade on the JSE on Thursday, as the big dual-listed shares in the Industrial index made gains on the back of a weaker rand.
The rand extended its losses against the dollar early on Thursday, in line with a slide in most emerging market currencies as the US political crisis pushed investors into safe-haven assets. The local currency dropped almost 3% in morning trade to R13.35 to the dollar, the lowest level in a week.
The Industrial index was however 0.64% higher as icons such as Naspers [NPN], British American Tobacco [BTI] and Richemont [JSE:CFR] all traded more than 1% higher.
The weight of these giants helped push the All-share index 0.37% higher to 54 201 points and the Top 40 index 0.50% stronger to 47 742 points.
The rest of the market was however a mixed bag, as the political uncertainty in the US is putting a damper on stock markets worldwide. The Financial index lost 0.08%, while the Resources index gained only 0.34% despite the softer rand.
Gold shares, which benefited earlier in the week from global political uncertainty, lost 0.33% as investors started to take profit. The gold price was at that stage 1.56% higher at $1 257.03 per ounce as investors continued to buy gold as a safe haven, as White House turmoil spoiled risk sentiment.
Markets globally have been rattled by uncertainty over US President Donald Trump’s future, following reports that he tried to interfere with a federal investigation.
Investors were also shelving rosy hopes for US tax reform, rethinking strategies based on Trump's economic growth promises as the president faced his loudest criticism yet over possible collusion during his election campaign with Russia.
Investors in Naspers were however unperturbed by the political turmoil and in early morning trade the stock reached yet another all-time high after gaining 1.23% to R2 758.42. The share price is already 17.7% higher over the past 30 days and 34.7% higher than 90 days ago.
The stock received a boost when Tencent, the Chinese internet giant in which Naspers holds a 34% stake, announced better-than-expected results for the first quarter until the end of March. This investment represents the biggest part of Naspers’s income and market value.
Tencent achieved achieved 55% year-on-year revenue growth, driven mainly by smartphone and PC games, payment related services, digital content and online advertising. Operating profit grew by 44% year-on-year (y/y) and attributable profit increased by 58% y/y.
British American Tobacco [JSE:BTI] was 1.7% higher at R852.82. The share price gained almost 22% over the past three months and is now less than 2% below the 52-week high of R969.50 set in May last year.
Richemont [JSE:CFR], which lost almost 6% over the past week after disappointing results, traded 0.96% stronger at R109.11.
International retail group Steinhoff [JSE:SHF] traded 0.40% higher at R67.27. The group on Wednesday announced that it will list its retail interests in Africa, including Pep stores and the JD group, separately.
READ: Steinhoff plans Africa spin-off after R40bn expansion
Vodacom [JSE:VOD] continued its strong run of the past week, with the share price almost 7% higher, trading 1.4% firmer at R162.40.
MTN [JSE:MTN] was however 0.41% softer on news that the Rwanda Utilities Regulatory Authority imposed a fine of R112m on the group for non-compliance with the directives issued by the regulator.
