Naspers rally lifts the JSE. The JSE's largest share got some much-needed relief after MSCI said it wouldn't exclude shares with unequal voting structures from its benchmark indices.

Naspers led a rally on the JSE yesterday after MSCI Inc. said it wouldn't exclude companies with unequal voting structures in their shares from its benchmark indices. A strong rise in Internet and gaming giant Tencent also supported Naspers, which tends to move in tandem with its Chinese associate company.

MSCI Inc. compiles indices that are widely followed and mirrored by investors and inclusion results in tracker funds such as ETFs buying the underlying securities. The vast majority of Naspers's shareholders own its listed, non-voting N shares while its unlisted A shares control the group.

MSCI said while it supported the one share one vote principle, it said its indices should aim to represent the broadest investment opportunity set available based solely on the inevitability of the underlying markets.

Current market benchmarks have served the investment community well over the past decades as an objective reflection of the investable investment opportunity set available to international institutional investors," said Remy Briand, MD and chairman of the MSCI Index Policy Committee. "As of today, we do not believe that preferences and constraints on voting rights, among other governance considerations, should impact the definition of the investable universe underpinning these benchmarks as equity securities with no or unequal voting rights are still investable for most investors."

Tencent rose 5.8% in Hong Kong, paring its losses for the year to 34%. The share has been under pressure due to changes to online gaming rules by China's authorities, while the trade war between the US and China has also weighed on the stock. However, US President Donald Trump appeared to soften his stance this week, saying there could be "a great deal" with China, although he stands ready to impose more tariffs on Chinese imports if there isn't.

Naspers closed 9.4% up at R2595.68 yesterday. The stock has shed 25% this year.

Naspers bounces big time on news that MSCI will retain the MSCI Global Investable Market Indexes UNCHANGED and launch a new Index Series reflecting the preferences of investors on unequal voting structures.

-- Michael Avery (@MichaelJAvery) October 31, 2018

Trump said maybe he can be friends with China = Tencent boom = NPN boom = Indi25 boom

-- Simon Brown (@SimonPB) October 31, 2018

That will put some fire back in Naspers

-- Roeloff Horne (@RoeloffHorne) October 31, 2018