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Johannesburg - Naspers, by far the biggest company on the JSE, rose sharply on Thursday and pulled the rest of the market higher, despite global markets taking a breather after Wednesday’s strong run.
Naspers [JSE:NPN] was by midmorning back above R2 000 a share and traded 2.37% higher on R2 032.10 in reaction to a strong performance in Hong Kong by Tencent, the Chinese internet giant in which Naspers holds a stake of 34.4%. The stake in Tencent represents by far the biggest asset in the Naspers stable, in terms of value and income.
The industrial index was by midmorning already 0.85% higher despite a rampant rand and lower share prices in London.
The All-share index was by midmorning another 0.40% higher after Wednesday’s strong run and was heading towards the level of 51 000 points, trading at 50 523 points. The index dropped last week as low as 49 400 points, close to the level of 49 316 points at which it started the year.
The Top 40 index was midmorning 39% higher at 43 852 points.
Among the other indices the financial index was 0.47% higher, but the resources index was 0.75% lower due to profit taking after Wednesday’s strong run.
The gold index continued with its recovery and gained another 3.29%, supported by a jump in the gold price of 0.79% to $1 149 per ounce.
Tencent, the second-largest traded stock on the Hong Kong bourse, gained 2.18% on Thursday to HK$187.60, after it jumped 2.2% on Wednesday, in response to the internet giant's announcement of the launch on January 9 of a new offering that will replace its popular WeChat app.
With WeChat's improved version, users can access functions and content by simply scanning the QR code of the service or content providers instead of downloading the app. Tencent expects the web page-like programme to be warmly welcomed by merchants and free users.
Tencent has also teamed up with NavInfo, a Shenzhen-listed digital mapping company, and GIC, Singapore's sovereign wealth fund, for the purchase of a 10% stake in Here, a digital mapping company controlled by Germany's leading carmakers. Here is engaged in developing a scheme to help its German shareholders develop self-driving cars.
Activities on the rest of the local market were influenced by the strong rand, which gained more than 1.4% on Monday to trade as low as R13.72 to a dollar, after Wall Street and the dollar fell victim to profit taking after recent strong runs.
The stronger rand supported financial shares with FirstRand [JSE:FSR] trading 2.2% higher at R53.70 and Standard Bank [JSE:SBK] gained 1.51% to R154.61. Alexander Forbes [JSE:AFH] was one of the busiest shares of the day and traded midmorning 1.71% stronger at R7.73.
The top resources shares were sharply down after Wednesday’s strong gains. Anglo American [JSE:AGL] traded 2.50% softer of R194.57 and BHP Billiton [JWE:BIL] was 1.86% lower on R218.48.
The one exception was Arcelor Mittal [JSE:ACL] which was midmorning already 4.09% higher on R11.46 on the back of higher steel prices.
Gold Fields [JSE:GFI] was the best performer in the gold sector gaining 4.15% to R41.89. Sibanye [JSE:GFI], which traded on 3 August this year at R70 per share, was 3.42% stronger on R24.17. Anglogold [JSE:ANG] was 3.13% higher on R143.85.
