JSE in comeback on retail data

DESPITE a weak opening‚ the JSE all-share closed firmer yesterday as upbeat retail sales data buoyed the sector and rand hedges were boosted on a weaker rand.

Stocks in companies that make most of their income domestically recovered‚ after being under pressure following President Jacob Zuma’s decision to shake up his executive.

The rand was at a worst intraday level of R13.5998 to the dollar‚ before recovering towards the JSE’s close at 5pm.

Some mining stocks were lower on weaker commodity prices‚ with dips in platinum and gold.

Retail trade sales rose by a significant 5.5% year on year in August.

The sector was set to make a healthy contribution to third quarter GDP‚ FNB senior economic analyst Jason Muscat said.

The print was the highest annual growth rate since May 2013‚ and did not come off a particularly low base‚ he said.

Year-to-date retail sales were 1.5% higher than at the same point last year.

The Dow Jones industrial average shot up 0.59% at its opening and European markets were higher on positive company results.

The JSE all-share closed 0.47% up at 58 152.4 points and the blue-chip Top 40 rose 0.46%.

Banks gained 0.93%‚ general retailers 0.87%‚ financial stocks 0.81%‚ food and drug retailers 0.61%‚ industrials 0.59% and property 0.38%. Resources lost 0.23% and the gold index 0.09%.

Global diversified miner Anglo American shed 1.74% to R255.67.

Richemont increased 1.8% to R123.20, on expectations of a significant increase in earnings.

Naspers ended the day flat. –