Naspers leads main indices higher on Chinese news

THE MAIN indices rebounded yesterday, led by Naspers after the e-commerce firm’s Chinese moneymaker won approval to set up a bank.

The Top40 index was up 0.76 percent to close at 46 738.7 and the broader all share index added 0.73 percent to 51 927.57.

“We had better-thanexpected data out of China last week and that is giving some of the resources a bit of lift,” said Rigardt Maartens, a portfolio manager at PSG Securities.

“Apart from resources, the market has had a very good run but I don’t think we can expect a major correction in the short term,” he said.

The market bounced back after back-to-back declines last week, when it was hurt by growing concern that recent gains might have pushed prices to levels from which they could only disappoint.

Investors are expected to take some comfort in South African fundamentals after more than 200 000 metal sector workers late yesterday ended a four-week wage strike.

Naspers added the most

2.94% The jump in Spur’s shares on its annual sales performance

points to the benchmark index, rising 1.9 percent to R1 308.40, tracking sharp gains in China’s Tencent Holdings.

Tencent, in which Naspers owns more than 30 percent, won approval from China’s banking regulator late on Friday to set up a bank in the Qianhai economic zone.

Shares of Spur Corporation rose after it reported restaurant sales for the year to June rose 13.5 percent to R5.5 billion. Spur shares rose 2.94 percent to R31.50.

Coal producer Exxaro Resources climbed 1.95 percent to R144.01. It said it had bought coal mines, the bulk of whose output is destined for China, from France’s Total.

Merafe Resources surged 5.07 percent to R1.45 after the ferrochrome producer flagged a jump in first-half profit of as much as 142 percent.