JSE closes up thanks to retailers and industrials

THE JSE closed firmer as retailers and industrials saved the day yesterday after disappointing trading updates from Sasol and Lonmin.

Miners were the main casualties, with warning of profit-taking.

Property stocks and financial shares supported the market generally‚ but banks closed weaker.

Parliamentary finance committee chairman Yunus Carrim warned yesterday that the financial sector would be under intense political scrutiny this year.

Global sentiment was positive after the Dow closed above 20 000 points for the first time on Wednesday.

US markets appeared unaffected by tension between President Donald Trump and Mexico over a wall the US wants on the Mexican border. Metal prices were lower. Higher-than-expected producer inflation had little influence on the market – it rose to 7.1% annualised in December from November’s 6.9%.

The JSE all-share closed 0.29% higher at 53 405.7 and the blue-chip Top 40 added 0.28%. General retailers were up 1.25%‚ industrials 0.85%‚ the property 0.46% and financial shares 0.39%. The gold index shed 1.16%‚ resources 1.06% and platinum stocks 0.92%. Banks gave up 0.52%. Lonmin plummeted 22.56% to R23.31. Its quarter platinum sales were 10.3% down last month on the previous matching quarter’s.

Sasol ended 3.02% weaker at R409.26 after saying in its trading update for the six months to last month that it expected first-half headline earnings a share to fall as much as 44%‚ mainly on rand strength.

Rand hedge British American Tobacco rose 1.79% to R824.94‚ but Richemont eased 0.37% to R103.75.

AngloGold Ashanti lost 1.77% to R160 and Harmony 1.6% to R31.44.

Kumba Iron Ore leapt 4.16% to R199.72. The group has said it expected 20% growth in annual profit.

Nedbank was 1.48% lower at R235.76 and Barclays Africa 0.81% to R163.73. Sanlam rose 2.65% to R67.78 and Old Mutual 1.04% to R35.87.

Clientele climbed 3.72% at R17.28 – up 8.68% this month.