JSE rebounds 1% in broad-based gains, led by Naspers
The local bourse has recovered well from Monday's global equity sell off, although geopolitical risk and domestic woes still threaten
A strong showing by market heavyweight Naspers helped lift the JSE on Tuesday, with the local bourse recovering from Monday's sell-off.
At 10am the all share was up 0.99% to 50,932 and the top 40 to 1.2%. Industrials were up 1.58% and food and drug retailers 1.01%.
Global risk assets in general had come under pressure from a series of factors, including the US-China trade war issue, but news that US and Chinese officials had resumed talks improved sentiment a little on Tuesday.
Citing people familiar with the matter, Dow Jones Newswires reported that Chinese officials were considering amending the Made in China 2025 plan, a state-led industrial policy aimed at enabling Chinese companies to dominate an number of industries, including artificial intelligence and robotics.
Asian markets were mostly higher. Naspers led the gains by adding 3.29% to R2,840.50, with the company tracking a rise its main asset, Hong Kong-listed Tencent.
Local factors also offer the prospect of giving the market direction on Tuesday, which is busy on the economics front.
Statistics SA is scheduled to release October’s mining figures at 11.30am and manufacturing at 1pm.
Mining is expected to have continued September’s 1.8% decline, but at a slightly slower pace of about 1.6%, according to a poll of economists by Bloomberg.
Manufacturing output is expected to have picked up to 0.8% from 0.1%.
Stats SA is also scheduled to release the third quarter’s employment statistics at 11.30am.
Global political and economic issues are expected to continue to dominate the direction of SA equities and the rand, analysts said, although ongoing issues at Eskom are increasingly weighing on sentiment.
"The extent to which the local market prices for these types of geopolitical risks will perhaps lessen as we gravitate towards the 2019 presidential elections as domestic risks become more prevalent," Rand Merchant Bank analyst Nema Ramkhelawan-Bhana said.
Sasol added 1.67% to R420.61.
Rand hedge British American Tobacco rose 1.13% to R496.50.