The JSE’s All Share Index ramped up 4.9% on Friday after the market was led higher by commodity heavyweights and the price of Naspers and Prosus shares, which benefited from soaring tech stock prices in China.
Naspers climbed 7.3% to R2180, Sasol increased 9.3% to R308.92, while mining group Sibanye-Stillwater’s share price shot up 8.6% to R42.50.
The JSE’s main indices are heavily weighted by some companies with big market capitalisations, and, for instance, of the JSE’s Top 40 Index that increased by a big 5.49% on Friday, Naspers makes up 8.29% of the index, global luxury goods group Richemont makes up 15%, resources group Anglo American 11.4% and Naspers’ European subsidiary Prosus 3.51%.
Anglo’s share price notched up a substantial 11.45% to R608.47 on Friday, while Prosus’ share price was up by 6.47% to R896.51.
Naspers’s and Prosus’ market capitalisations are in turn heavily weighted by their 29% stake in China-based internet and gaming giant Tencent Holdings, the share price of which rose on Friday off the back of a rampant Chinese market, following news of less tensions between the US and China, and speculation about a further reopening of China from its tough Covid-19 rules.
Tencent’s share price rose 7.77% to KGD 238.60.
“Unsubstantiated social media posts flagging an aim to relax Covid rules in March have also driven optimism all week and seemed to get new momentum on Friday,” Reuters reported.
“A former Chinese senior disease control official told a closed a-door conference substantial changes to the zero-Covid policy were set to take place in the next five to six months, according to a recording of the session heard by Reuters.”
The Hang Seng Tech index in Hong Kong was up 7.5%. China is the worlds biggest market for many commodities.
“”The rally extended to commodities markets with iron ore surging on Friday, with China sensitive stocks listed in London and Europe. Miners such as Rio Tinto and Anglo American rose sharply along with luxury retails like LVMH and Swiss jeweller Richemont,” Reuters reported.
CNBC reported US stocks also rose Friday after US Labor Department figures showed their economy added a better than expected 261 000 jobs in October. This after the markets had slumped days before, following an unexpectedly harsh message by the US Fed last Wednesday night, that debunked speculation that the Fed would be changing its stance on interest rates any time soon, and that interest rates were likely to remain higher for longer than expected and will likely exceed previously anticipated levels, as inflation remained high.
The US Dollar Index extended gains to 113 on Thursday, on track to move back to 20-year highs after the Fed said interest rates will peak at higher levels than previously expected. It was last seen 1.9% weaker at 110.70 on Friday.
The South African rand, which last week depreciated towards R18.50 to the dollar, back to levels not seen since May of 2020, on the back of a rallying greenback. However, the rand strengthened considerably on Friday on global queues, appreciating by 1.33% to end the day’s trading at R17.99 to the dollar.
In the US, the Dow Jones Industrial Average index gained 1.26% on Friday to 32 403.22, the S&P 500 advanced 1.36% to 3 770.55 and the Nasdaq composite rose 1.28% to 10.475.25. However, over a week, the three indices remained 1.4%, 3.35% and 5.56% lower, respectively.
BUSINESS REPORT