JSE bounces back on retailers and banks
Naspers is an early leader as analysts say market heavyweight offers 'value' after Tencent jumps 7% in Hong Kong trade on upbeat Chinese data
The JSE all share rose at the opening on Friday as Asian markets gained from oversold levels, despite another sharp retraction on Wall Street.
The Dow closed 2.13% lower on Thursday, but the Hang Seng rose 2% in Hong Kong trade with Chinese internet company Tencent jumping more than 7% as it continued with its share repurchase programme, buying back shares for a 22nd straight session.
Naspers, which owns a third of Tencent, rose in response, gaining 2.61% to R2,751.22 in early-morning trade after closing higher on Thursday for the first time in eight sessions.
Asian markets were supported by upbeat economic data from China with indications that China is weathering the trade spat with the US better than predicted.
The trade balance in September came in at $31.7bn from an expected $19.2bn. Exports rose strongly by an annual 14.5% from an expected 8.2%, and imports have done well coming at in at 14.3% growth versus 15.3% expected.
The two countries’ trade gap hit a fresh high, Dow Jones Newswires reported. A rush of shipments driven by fear of heavier tariffs, a softer domestic currency and solid external demand all spurred export growth.
“But the momentum won’t last long, economists have predicted, as trade woes will likely intensify,” the newswires said.
The rand was at R14.4849 to the dollar from R14.6288 after the euro firmed above the $1.16 level again.
After dipping in overnight trade the Brent crude price added 1.25% to $81.9 a barrel.
At 9.58am the all share was 0.79% up at 52,642 points and the top 40 rose 0.93%. Platinums rose 1.71%, the gold index 1.7%, banks 1.54%, general retailers 1.45% and industrials 1.01%.
Sasol added 0.71% to R524.51.
British American Tobacco shed 5.25% to R624.39.
PSG Konsult rose 0.52% to R9.69. It earlier reported recurring headline earnings rose 18% for the six months to end-August.
Truworths International climbed 3.28% to R80.56 and Shoprite 2.56% to R186.32.
Equites Property Fund, which focuses on logistics, rose 2.62% to R21.19. The group said its interim dividend to end-August rose 11.7%, one of the better performances in the property sector.
Mondi slipped 0.9% to R342.35.