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Local Equities Rally as Beijing Softens Stance on New Gaming Restrictions

SOUTH AFRICA
The benchmark JALSH equity index has rallied 2.66% Wednesday morning, placing it at its highest level since mid-August. Naspers and Prosus have led the rally with the move potentially being supported the partial recovery in Chinese stocks following signs that Beijing is softening its stance on new gaming restrictions. That resulted in Hong Kong listed Tencent recouping some of Friday’s sharp losses when regulators placed sweeping restrictions on in-game spending and playing time.
  • Elsewhere, lower US yields are likely supporting the rand, which is slightly outperforming its EMEA peers amid thin holiday liquidity. USDZAR has been contained within yesterday’s ranges, with price currently operating below the 50- and 200-DMAs at 18.6510 and 18.6715, respectively.
  • Loadshedding remains suspended over the holiday period, with the first phase of shedding set to resume from Friday at 4pm local time, after being suspended entirely from Dec 22. Eskom are still to monitor the situation and will communicate any significant changes.

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