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JOHANNESBURG - The Downward correction in the share price of Naspers, the biggest weight on the all share index, continued last week.

The drop in the Naspers’ share price and a stronger rand impacted on the all share index on the JSE as it lost its upward momentum of the last two weeks.

This, despite a strong surge in US share prices as the Dow Jones industrial average had broken through the 24000 level for the first time last Thursday.

Just after the close of the JSE on Friday, the Dow had broken through the 24300 points level. This sharp increase was mostly down to investors welcoming the signs that the odds were improving for the Republican-led effort to forge a sweeping tax overhaul bill.

Just after the close of the JSE on Friday, share prices on Wall Street, however, fell sharply on a report by US President Donald Trump’s former national security adviser Michael Flynn that the president had directed him to contact the Russians.

Downward movements in Tencent, Naspers’ affiliate company in China, had caused the JSE-listed company’s share price to fall by R558.38 (13.65 percent), since its record close of R4090 on November21. Naspers closed at R3531.62 on Friday.

Due to this strong drop in Naspers, as well as the stronger rand, the all share index on the JSE ended last week 1.4percent lower at 59449.38 points.

Over the week, industrial shares, mostly driven by a fall in rand hedgers, had weakened by 2percent, financials gained 2.4percent, while resources retreated sharply, losing 4.4percent over the week.

Listed property shares also recovered strongly and ended the week 1.2percent higher.

The rand continued to move stronger. The currency had improved to R13.69 to the dollar by 5pm on Friday compared to R14.14 at the end of October. Against the pound, the rand had appreciated by about 2cents at R18.48.

-BUSINESS REPORT