JSE regains 2020 losses, but tech heavies skew the numbers
Banking and retail stocks have been hardest hit and continue to reflect investor concern about the SA economy
The JSE’s rally to levels last seen before SA went into lockdown paints a skewed picture of what is really happening in SA Inc, as index heavyweights Naspers and Prosus continue to drive the local bourse higher while shares in locally focused companies reflect concerns about SA’s dire economic situation.
Naspers and Prosus, which make up more than a quarter of the JSE’s total market capitalisation, have increased 44% and 61%, respectively, so far this year. That is largely thanks to their 31% stake in internet giant Tencent, amid a rise in gaming since the coronavirus lockdowns began. Support also came from the weaker rand.