JSE to contend with mixed Asian markets on Friday, as Tencent pares gains
Tencent, which has rocketed almost 30% since Wednesday, had fallen 4%, with oil climbing as the war in Ukraine continues
The JSE looks set to start to mixed Asian markets on Friday morning, with Tencent paring gains after its recent surge, while indications are that the war in Ukraine will continue.
The Kremlin has pushed back on reports that ceasefire talks have made progress, lifting oil prices, while Asian markets have benefited this week from Chinese promises to support its market.
Markets were also digesting news overnight that Shenzen, China’s tech hub, was easing lockdown restrictions.
Over the past two days, the Chinese government has realised its need to support businesses and communicate better, given the tame healthcare footprint Omicron presents, said SPI Asset Management managing partner Stephen Innes in a note.
“Further easing of restrictions could lead to a significant upward demand rerating across China as this initial walk back in restraint could trigger domino effects across lockdown China,” he said.
In morning trade the Hang Seng was down 2.44% and the Shanghai Composite 0.22%, while the Australian All Ordinaries index was up 0.49% and Japan’s Nikkei flat.
The Hang Seng had rocketed more than 6% on Thursday, and 9% in the prior session.
Tencent, which can give direction to the local bourse via Naspers, had fallen 4.51%, having jumped 6.27% on Thursday and more than 23% on Wednesday.
This helped lift Naspers, and the JSE, which both pared gains a little on Thursday after surging more than 20% on Wednesday.
The JSE needs to lose about 0.6% to close where it did last Friday.
Gold was down 0.37% to $1,934.10/oz while platinum was little changed at $1,024. Brent crude was up 2.16% to $109.22 a barrel, having surged 9% on Thursday, when the Kremlin made its comments.
The rand was 0.35% weaker at R14.96/$.
Texton, which owns properties in the UK and SA, is expected to report later that distributable income more than halved in its half-year to end-December, from R98m previously. The group, however, did not go into details in a recent trading update.