25 Jan

SA stocks rally to record as Tencent surge boosts Naspers

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The Johannesburg Stock Exchange index jumped 2.1% as of 10:07 in Johannesburg, setting a fresh intraday record, as Naspers [JSE:NPN] was lifted by a surge in partly owned Chinese online giant Tencent Holdings.

Retailer Woolworths [JSE:WHL] was also among the leading gainers, soaring the most since 1998 after an upbeat trading statement.

Asian stocks and US and European equity futures rose Monday as investors focused on the prospect of additional fiscal stimulus and supportive Federal Reserve policy amid the worsening pandemic.

Naspers advanced as much as 8.1%, the most in 10 months, to a new all-time high as Tencent jumped 11% in Hong Kong, the most since 2011. Naspers subsidiary, Prosus, which holds the company’s 31% stake in Tencent, climbed 7.4% to the highest level since the company was carved out of the tech investor in September 2019.

Woolworths led gains in an index of general retailers, which climbs as much as 3.2%, rising for a third day.

•  Foschini Group [JSE:TFG] +1.4%, Truworths International [JSE:TRU] +0.5%, Cashbuild [JSE:CSB] +1.1%, Massmart Holdings [MSM] +0.4%

Food and drug retailers rise 1.1%

• Shoprite Holdings [JSE:SHP] +2%, Spar Group [JSE:SPP] +1.6%, Pick n Pay [JSE:PIK] +2.2%, Bid Corp [JSE:BID]. +0.4%, Clicks Group [JSE:CLS] Ltd. +0.4%, Dis-Chem Pharmacies [JSE:DCP] +2.6%

Gauge of mining stocks rose 0.7% as gold producers joined diversified miners to drive the index higher.

  • Gold sector rose 2.7% to the highest intraday level in more than a week, shaking off weakness in bullion prices.
  • Harmony Gold Mining [JSE:HAR] +3.6% as company said it is on track to meet its output guidance for 2021.
  • Platinum producers rose 0.6%

    Index of bank stocks drops for a fourth consecutive session, falling 1.4% to the lowest intraday level since January 5, with lenders among those causing the biggest drag on the index.

    • FirstRand [JSE:FSR] -1.5%, Capitec Bank [JSE:CPI] -1.8%, Standard Bank [JSE:SBK] -1%, Absa Group -1.1%, Nedbank Group [JSE:NED] -0.8%, Investec [JSE:INL]  -0.5%

    Old Mutual drops 1.7% after profit warning, dragging insurers down 0.8%

  • Sanlam [JSE:SLM] -0.7%, Momentum Metropolitan Holdings -1.2%, Discovery [JSE:DSY] Ltd. -0.1%, Liberty Holdings [JSE:LBH] -0.6%.

    Foreigners remained net sellers of South African stocks for a third consecutive day Friday, disposing of R266 million worth of shares, according to exchange operator JSE.

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