JSE poised for solid gains as Chinese tech stocks rebound
The JSE is set to enjoy solid gains for the second straight session on Thursday, driven mainly by the top end of the market.
The share price of market heavyweight Naspers is poised for a further recovery, after falling to its lowest level since March 2020 on Tuesday amid jitters on increased regulatory scrutiny in China, where it holds a 29% interest in Tencent via its global internet arm Prosus.
However, the Chinese authorities have reportedly sought to calm jitters, after days of selling in the technology sector. Tencent shares were up nearly 9% in Hong Kong on Thursday.
Elsewhere, the market mood was positive after US Federal Reserve chair Jerome Powell reassured the markets of continued monetary support.
The rand was slightly more positive, gaining 0.17% against the dollar at R14.72/$, but still 3% weaker month to date.
The price of Brent crude topped $75 a barrel for the first time in three weeks. Higher oil prices and a weaker rand could lead to further increases in fuel prices in SA.
Other commodity prices were also relatively well supported, thanks to a generally weaker dollar. Gold was up 0.62% to $1,816.89/oz and platinum rose 1% to $1,075.66/oz.
Higher commodity prices have boosted SA’s finances through corporate tax and mining royalties.
The release of the second-quarter US GDP in the afternoon will likely be the main focal point of the markets.
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