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Johannesburg - Naspers [JSE:NPN] is fast approaching the R3 000 level again, as the stock rallied for the second day in response to a similar recovery in the price of its Chinese subsidiary Tencent.
Naspers was the biggest mover on the JSE on Monday, gaining more than 3%. The share gained 1.4% to R2 993.93 on Tuesday - just below the key R3 000 mark.
Naspers traded above R3 000 for the first time on August 23, when it set an all-time high of R3 017.25. However, it then fell back in response to slower global markets.
Global markets are however on the run again. Wall Street was at a new record level on Monday afternoon and Asian markets reached ten-year highs on Tuesday, amid investor relief that North Korea did not fire another missile over the weekend on its national day and that the impact of hurricane Irma was not as bad as expected.
Reuter reports that there is strong demand for Tencent shares from China, and the share price reached a new record of HK$333 by mid-morning on Tuesday, 2.20% higher than the day before. Naspers owns 34% of Tencent and this stake represents by far the biggest portion of its income and market value.
In fact, the value of the Naspers stake in Tencent is higher than the whole of Naspers.
Naspers is more than 46% higher for the year to date but it has treaded water recently, gaining only 1.52% over the previous 30 days.
Stronger global markets gave the Industrial index a boost, as most of the bigger shares on the JSE are also listed on the big world markets. At mid-morning the index was 0.71% higher and as a result, the All-share index traded 0.71% higher at 56 406 points. The Top 40 index was 0.79% stronger at 50 019 points, just below the 52-week high of 50 175 points.
The Financial index also benefited from positive market sentiment and traded 0.68% stronger, while the Resources index gained 0.88% as the three big commodity conglomerates all traded stronger. Glencore [JSE:GLN] set another intraday 52-week high and is now fast approaching an all-time high.
Richemont [JSE:CFR], which closed on a 52-week high on Monday, was 0.15% lower at R119.40. British American Tobacco [JSE:BTI], which gained more than 3.4% over the previous seven days, was 0.29% softer at R833.00. Steinhoff [JSE:SHF] was 0.43% softer at R64.47.
Vodacom [JSE:VOD], which lost almost 10% last week, lifted for the second consecutive day and gained 0.94% to R164.05. Its rival MTN [JSE:MTN] was 1.06% higher at R122.05.
Consumer goods company AVI [JSE:AVI] traded higher for the second day on news that its operating profit grew 10.7% to R2.4bn on the back of revenue growth of 8.2% to R13.2bn. It reported a 9.4% increase in full-year headline earnings per share to R5.08. The share price gained 1.44% to R98.77.
To protect margins, AVI increased the average selling price of tea, coffee, biscuits and personal care products by 21%, 12%, 11% and 7.5% respectively.
Standard Bank’s [JSE:SBK] shareholders reacted positively to news the bank has scrapped its co-CEO executive structure and that Sim Tshabalala has taken over the the reins of the company as the new group chief executive.
Ben Kruger, the former co-CEO, has stepped down with immediate effect to facilitate this executive structure change.
Standard Bank gained 0.72% to R164.08 and FirstRand [JSE:FSR] was 0.29% higher at R55.16. Sanlam [JSE:SLM], which lost more than 5% last week in reaction to a 19% profit drop, regained 1.71% to R68.57.
Glencore set yet another 52-week high, gaining 1.82% to R63.78. The share is now chasing an all-time high of R67.09 set in September 2014.
Anglo American [JSE:AGL] was 0.65% up at R238.52 and BHP [JSE:BIL] gained 1.30% to R245.42, not far behind the 52-week high of R249.42.
- Fin24's parent company Media24 is part of the Naspers Group.
